CAGR stands for Compound Annual Growth Rate. It shows the average annual growth rate of an investment over a specific time period.

Why is CAGR important?

CAGR helps investors understand long-term investment performance by smoothing out yearly fluctuations.

Can CAGR be negative?

Yes, if the ending value is lower than the beginning value, CAGR will be negative.

Is this CAGR calculator free?

Yes, CalHub’s CAGR Calculator is completely free and unlimited.

CAGR Calculator

Q: What is the CAGR formula?

CAGR = (Ending Value / Beginning Value)^(1 / Years) − 1

Calculate Compound Annual Growth Rate for your investments using CalHub.

Initial Value ($)

Final Value ($)

Time Period (Years)

Compound Annual Growth Rate

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CAGR Calculator - Compound Annual Growth Rate Tool

The CalHub CAGR Calculator helps investors, analysts, and business owners calculate the Compound Annual Growth Rate (CAGR) of an investment or business over a specific period. CAGR provides a smoothed annual growth rate, assuming that profits are reinvested each year, making it easier to compare investments or evaluate long-term performance.

What is CAGR?

CAGR (Compound Annual Growth Rate) represents the annualized growth of an investment over time. It helps investors understand the true growth rate of assets, mutual funds, or business revenue, ignoring volatility and fluctuations in annual returns.

CAGR Formula

CAGR = (Ending Value / Beginning Value)^1/Years − 1

Where is CAGR Used?

Stock market analysis: Compare growth of stocks over multiple years.
Mutual fund performance: Evaluate the average growth rate of investment portfolios.
Business growth evaluation: Measure revenue or profit growth of companies.
Long-term investment planning: Project future values of investments and savings.

Why Use CalHub CAGR Calculator?

Accurate & Instant: Calculate CAGR quickly and precisely.
Any Investment: Works for stocks, mutual funds, businesses, or projects.
Free & Secure: No signup required; data stays private in your browser.
User-Friendly: Simple interface suitable for beginners and professionals.

Frequently Asked Questions About CAGR

No, CAGR smooths out annual returns to show the average growth rate over time, unlike annual returns which may fluctuate each year.

Yes, if the investment or business value decreases over the period, the CAGR will be negative.

CAGR is primarily useful for long-term investments as it smooths out volatility over multiple years.

Yes, CalHub provides unlimited free usage without any registration or subscription.

No, all calculations are performed locally in your browser, ensuring complete privacy and data security.

Use CalHub’s CAGR Calculator to measure the growth rate of your investments, analyze business performance, or plan long-term financial goals effectively.