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CAGR calculator

CAGR Returns
0.00%
Initial Investment
Final Investment Value
Investment Period
years
What is CAGR?
CAGR (Compound Annual Growth Rate) measures the annual growth rate of an investment over a specified period of time. It takes into account the impact of compounding, which is important for long term investments. Pro Tip: CAGR is best used to evaluate returns on lump sum investments.
Can CAGR be used to evaluate the returns on my SIPs?
CAGR will not help in evaluating returns on SIPs since they involve irregular cash flows. To evaluate SIPs, it is best to use XIRR (Extended Internal Rate of Returns). Note: We are currently working on an XIRR Calculator. It should be out soon.
Does CAGR account for factors that impact returns, like taxes and inflation?
No. You will need to consider factors like taxes and inflation separately.
What is a compound annual growth rate (CAGR) calculator?
A CAGR calculator is a tool that estimates an investment's compounded yearly Growth Rate over a certain time period, reflecting the average yearly growth rate.
Why does CAGR matter?
CAGR is crucial because it smoothes the yearly growth rate, reducing the impacts of volatility and providing a more accurate picture of an investment's performance over time.
Can I use this CAGR calculator for free?
Yes, our online CAGR calculator is free to use, with no costs or limits on the amount of computations.
Does the CAGR calculation consider investment risks?
No, the CAGR calculation does not consider investment risks. It just shows the average yearly growth rate based on previous data.
Is CAGR better than IRR for performance evaluation?
CAGR is often considered a better performance indicator than IRR (Internal Rate of Return) because it provides a consistent annual growth rate, reflecting overall financial health.
Can the CAGR calculator help in comparing different investments?
Yes, the CAGR calculator helps you compare the performance of different investments by providing a consistent annual growth rate, enabling better investment decisions.