How to calculate Compound Annual Growth Rate

When investing or saving (Yes, they are different), it is often useful to calculate your returns to measure how your investments (or savings) are doing. This can be easily done by calculating CAGR or the Compound Annual Growth Rate (CAGR) of your investments.

Always calculate the real growth rate of your investments

What is CAGR

Investopedia defines CAGR as –

“CAGR isn’t the actual return in reality. It’s an imaginary number that describes the rate at which an investment would have grown if it grew at a steady rate. You can think of CAGR as a way to smooth out the returns.”

Formula for calculating CAGR

A simple formula for calculating CAGR is,

Compound Annual Growth Rate

A simple tool to help you calculate CAGR

We have created a simple CAGR Calculator, which you can use to calculate real returns for your investments. To download this calculator, click on this link. You will be taken to a Google Spreadsheet. Go to the File Menu, and click Download. Once the spreadsheet is downloaded, you can fill up the required numbers and the CAGR or Final Amount or Years will be calculated accordingly.

Click on image to go to the CAGR Tool

In case you have any problems downloading the calculator, just leave a comment below (with email) and we will mail it to you. The instructions for using the calculator are given in the sheet itself.

Hope you find it useful.


Written by Dev Ashish

Founder - Stable Investor Investing | Personal Finance | Financial Planning | Common Sense


  1. just a quick question..where do you find the P/BV ratio of a particular script…tried googling but no luck. Keep up the good work..I like reading your site..

  2. Hey!

    Can you also provide a CAGR formula for monthly payments which culminate into a bulk yield at the end of x years.

    E.g.: If I pay 3k per month for 15 years and the maturity value is 15 lacs, what is the effective CAGR of this investment?

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