Calculadora de CAGR
- Created by
- Renato Passos, Eng. de Software
- Reviewed by
- Renato Passos, Eng. de Software
Last updated: Apr 18, 2026
Formula
CAGR = (VF/VI)^(1/n) − 1
About this calculator
The CAGR Calculator computes the Compound Annual Growth Rate, which measures the average annual return of an investment over a period, considering compounding. The formula is: CAGR = (Final Value / Initial Value) ^ (1 / Number of Years) - 1. The result is expressed as a percentage, indicating the annual rate needed for the initial value to grow to the final value over the given period. This tool is useful for comparing the performance of different investments or projecting future growth.
When to use the CAGR Calculator? It is ideal for analyzing historical returns of stocks, funds, real estate, or any asset with known initial and final values over years. For example, an investor can calculate the CAGR of a mutual fund that grew from $10,000 to $15,000 in 3 years, obtaining the annual growth rate. It is also used to compare investments with different periods, as it standardizes returns on an annual basis.
Important considerations: CAGR assumes constant growth compounded annually, ignoring volatility and intermediate cash flows (such as contributions or withdrawals). Therefore, it does not reflect market risks or fluctuations. Moreover, CAGR is a backward-looking metric; it does not guarantee future results. For investments with multiple cash flows, other metrics like IRR (Internal Rate of Return) may be more appropriate. Ensure you use complete years, converting months or days into fractions of a year.
Frequently asked questions
What does a CAGR of 10% mean?
It means that, on average, the investment grew 10% per year, compounded annually, over the analyzed period.
Can I calculate CAGR for periods shorter than one year?
Yes, but the number of years must be fractional. For example, 6 months equals 0.5 year. The calculation considers continuous compounding.
Is CAGR the same as simple average return?
No. CAGR accounts for compounding, while simple average return is the arithmetic mean of annual returns, ignoring compounding.
How to interpret a negative CAGR?
A negative CAGR indicates that the final value is lower than the initial, meaning the investment had an average annual loss over the period.
Does CAGR work for investments with additional contributions?
Not directly. CAGR assumes only an initial investment and a final value, with no intermediate flows. For contributions, use IRR or an adjusted return calculator.