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Understanding CAGR: How to Measure the Average Growth Rate of Your Investments

Published 30 October 2026

Understanding CAGR: How to Measure the Average Growth Rate of Your Investments

Measure the average growth rate of your investments | Free calculator

Calculate your compound annual growth rate (CAGR) with our simple, free calculator. See how your investments have grown over time and compare how they have performed. Try it now!

Understanding CAGR: how to measure the average growth rate of your investments

CAGR (compound annual growth rate) is a way to measure the average yearly growth rate of an investment over a given period, with the effect of compound interest included. It is one of the most important tools investors have for evaluating their returns and comparing how different investments have performed.

What is CAGR?

CAGR is the average annual growth rate that would have produced the total return if the investment had grown at an even pace every year. It gives you a clear picture of how fast your investment has grown over time, regardless of market ups and downs.

How do you use our CAGR calculator?

With our CAGR calculator, you can easily find your average growth rate. Just enter:

  • The start date of your investment

  • The end date of your investment

  • Your total return in percent

An example:

If you invested on April 18, 2014 and earned a total return of 198% by August 4, 2024, your CAGR is calculated like this:

Starting value: €100 (a hypothetical starting amount)

Ending value: €298 (€100 + 198%)

Period: 10.3 years

CAGR: about 11.2% per year

Why does CAGR matter?

CAGR helps you:

  • Check whether your investments are living up to your goals.

  • Compare how different investments have performed over time.

  • Understand the effect of long-term growth and compound interest.

Calculate your CAGR today!

Use our CAGR calculator to find your average growth rate quickly and easily. It is an essential tool for any investor who wants insight into how their money has grown over time.

Here you can calculate your compound annual growth rate (CAGR) and see how your investments have performed over time!

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Written by

Linnéa SchmidtLinnéa Schmidt