A Compounding Annual Growth Rate measures the cumulative effect of gains (or losses) over a time period including the effects of compounding.

CAGR Calculator Tips

A CAGR calculator helps you to calculate what is the effective returns rate of a particular investment or asset.

It is also helpful when comparing different investment asset classes performance by comparing the CAGR or IRR.

Knowing the CAGR of an investment helps you to make a better decision on whether to continue investing, invest more in, or divest an asset.

For the time period which is in years, you can use a fractional number (i.e. 1.5 to represent 1 and a half years or 18 months).


View other financial calculators