CAGR represents compound annual growth rate. To calculate the annual growth rate, simply input your initial value, final investment value, and number of years into the CAGR calculator input. Then click on the calculate button. You will see average yearly growth rate in the CAGR result box.
CAGR Growth Over Years
Frequently Asked Questions
The CAGR ratio measures an investment's annual growth rate of an investment over a specific time period. It measures a smoothed rate of annual return.
The CAGR calculator simplifies complicated computations and accurately determine the annual growth rate of your investment. It helps in comparing comparing the performance of a stock to its peers or the industry, and make better investment decisions.
A good CAGR percentage for large companies in an industry ranges from 8% to 12%, whereas midcap/micro cap (high-risk) companies aim for a compound annual growth rate between 15% to 25% on your investment.
Five year CAGR indicates the compound average rate of growth of your investment over a period of 5 years. It shows the rate at which the investment fund would have grown annually for five years to reach its final value.
IRR or XIRR is preferable for investments with irregular cash flows, while CAGR is suited to measure single, lump-sum investments over time period.