CAGR Calculator
Calculate the compound annual growth rate of your investment
CAGR
17.46%
Total Gain
$400,000
Multiplier
5.0x
Growth Over Time
Value at CAGR
Initial
CAGR (Compound Annual Growth Rate) measures the annualised return of an investment over a period, smoothing out volatility. Use it to compare the performance of stocks, mutual funds, or your overall portfolio on a like-for-like basis. CAGR is one of the most widely used metrics in finance for evaluating long-term investment performance.
Frequently Asked Questions
What does CAGR mean?
CAGR stands for Compound Annual Growth Rate. It measures the mean annual growth rate of an investment over a specified period longer than one year, smoothing out year-to-year volatility to give a single annualized return figure.
How is CAGR different from average return?
Average return simply adds up yearly returns and divides by the number of years, which can be misleading. CAGR accounts for compounding — it tells you the steady annual rate that would have turned your initial investment into its final value. CAGR is always lower than or equal to the arithmetic average when returns vary.
What is a good CAGR for stocks?
Historically, broad market indices like the Nifty 50 and S&P 500 have delivered 10–14% CAGR over long periods (15+ years). Individual stock CAGR varies widely. A CAGR above the market benchmark suggests outperformance, but past returns do not guarantee future results.