CAGR Calculator
Calculate Compound Annual Growth Rate of your investments
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Understanding CAGR (Compound Annual Growth Rate)
CAGR is a measure that represents the mean annual growth rate of an investment over a specified time period longer than one year. It describes the rate at which an investment would have grown if it had grown at a steady rate.
When to Use CAGR
- Comparing investment options
- Evaluating fund performance
- Analyzing portfolio returns
- Business growth analysis
- Long-term investment planning
Advantages of CAGR
- Simple to understand and compare
- Accounts for time value of money
- Smooths out volatility
- Widely used in financial analysis
- Helps in making informed investment decisions
Limitations of CAGR
- Does not show investment volatility
- Assumes steady growth rate
- Past performance may not indicate future results
- Does not consider investment risks
- May oversimplify complex investments