CAGR Calculator
Calculate the Compound Annual Growth Rate of any investment. Compare stocks, mutual funds, and portfolios using the single most reliable growth metric.
Investment Details
CAGR
13.99%
Annual growth rate
Absolute Return
150.0%
Total percentage gain
Total Growth
$15.0K
Profit over period
Projected Growth at 14.0% CAGR
$10.0K → $25.0K (7 yrs) → CAGR 13.99%
A CAGR Calculator measures the Compound Annual Growth Rate of an investment, the single most reliable metric for comparing returns across different assets and time periods. CAGR smooths out year-to-year volatility into one annualized percentage, making it possible to compare a stock held for 3 years against a mutual fund held for 10.
How This Calculator Works
CAGR uses the formula: CAGR = (Final Value / Initial Value)^(1 / Years) - 1. For example, if you invested $10,000 and it grew to $25,000 over 7 years, the CAGR is (25,000 / 10,000)^(1/7) - 1 = 13.99%. In Excel or Google Sheets, you can use either =RRI(years, initial, final) or =(final/initial)^(1/years)-1. The absolute return over the same period would be 150%, but CAGR expresses this as a steady 13.99% per year, which is more useful for comparison.
Why Use This Calculator
- •Compare investments held for different time periods on an equal footing
- •Get the Excel formula to use in your own spreadsheets (=RRI or the power formula)
- •See the difference between total return and annualized return
- •Project future values at the calculated growth rate
Frequently Asked Questions
What is a good CAGR for a stock or mutual fund?
A CAGR of 8-12% is considered solid for equity mutual funds over 5+ years. Index funds tracking the S&P 500 have historically returned around 10% CAGR long-term. Anything consistently above 15% over many years is exceptional and usually unsustainable.
Can CAGR be negative?
Yes. If your final value is lower than your initial value, CAGR will be negative. For example, an investment that drops from $10,000 to $8,000 over 2 years has a CAGR of -10.55%.
What does CAGR not show?
CAGR does not show volatility. Two investments can have the same CAGR but very different risk profiles. One might grow steadily at 14% per year while another swings between -20% and +40%. CAGR also assumes reinvestment of any dividends or gains.
How do I calculate CAGR in Excel?
Use the formula =RRI(years, initial_value, final_value) which returns the CAGR directly. Alternatively, use =(final_value/initial_value)^(1/years)-1. Both produce the same result.
Last updated: 2026-10-02
Source: CAGR formula: CAGR = (End Value / Start Value)^(1 / Years) - 1. Equivalent to Excel =RRI(n, PV, FV).
Disclaimer: For information only. Not financial, tax or legal advice.
Open a Trading Account
Start your SIP with a trusted broker and automate your step-up investments today.
Compare Brokers