Mr Calcu | Discover how fast your investment grew annually with our easy CAGR calculator — make smarter financial decisions today.

Effortlessly calculate your CAGR and unlock smarter investment decisions. Discover growth trends and make confident financial moves today.

CAGR Calculator Description

What is Compound Annual Growth Rate (CAGR)?

The Compound Annual Growth Rate (CAGR) represents the constant annual growth rate of an investment assuming compounding. It helps measure the performance of an asset or portfolio over time.

Why Use CAGR?

• It smooths out fluctuations by showing a consistent annual return.
• Ideal for comparing performance across multiple investments.
• Commonly used in finance, business, and investment analysis.

Formula for CAGR

CAGR = (Ending Value / Beginning Value)^(1 / n) - 1

Where:

• Beginning Value: The initial amount invested
• Ending Value: The final investment amount
• n: The number of years

Formula Derivation

Ending Value = Beginning Value × (1 + r)^n

Solving for r gives: r = (Ending / Beginning)^(1/n) - 1

Real-World Examples

Case Study 1: Angel Investment

• Investment: $25,000
• Value after 6 years: $120,000

CAGR = (120000 / 25000)^(1/6) - 1 ≈ 30.62%

Case Study 2: College Fund

• Investment: $10,000
• Value after 18 years: $38,000

CAGR = (38000 / 10000)^(1/18) - 1 ≈ 7.78%

Edge Cases to Watch

• Zero Duration (n = 0): Undefined CAGR — division by zero.
• Negative Duration: Invalid — time cannot be negative.
• Zero or Negative Starting Value: Cannot divide by zero or use negative base.
• Zero or Negative Ending Value: Returns -100% for zero; negative values must be interpreted case-by-case.
• Fractional Years: Supported — enter partial years like 2.75.

Take control of your financial future — calculate your CAGR now and make confident investment decisions!