Investment Tools

CAGR Calculator

Calculate Compound Annual Growth Rate (CAGR) across multi-year asset performance and investment returns.

Yr
CAGR Breakdown
Absolute Growth ₹ 2,00,000
Absolute Return 200.0%
Compound Annual Growth Rate (CAGR)

24.57%

About the CAGR Calculator

Our free CAGR Calculator allows investors to measure the Compound Annual Growth Rate of any investment or asset over a multi-year period. CAGR is widely recognized as one of the most accurate ways to determine smoothed annualized returns, filtering out the noise of short-term market volatility.

What is CAGR and Why is it Important?

Compound Annual Growth Rate (CAGR) represents the geometric progression ratio that provides a constant annual rate of return over the investment period, assuming profits are reinvested at the end of each year. Unlike simple average returns, CAGR accounts for the compounding effect, giving investors a realistic view of how their capital grew year over year.

How to Use the Calculator

Simply input your investment metrics or adjust the interactive range sliders:

  • Initial Investment Value: The starting amount or principal you invested.
  • Final Investment Value: The current worth or final payout of the investment.
  • Time Period: The total duration the money remained invested, expressed in years.

Click the Calculate button to instantly generate your absolute growth, absolute percentage return, and true CAGR.

Frequently Asked Questions (FAQs)

How is CAGR different from absolute return?
Absolute return simply measures the total percentage growth from start to finish without considering how long it took. CAGR annualizes that growth, making it easy to compare investments across different time horizons.
Does CAGR account for interim volatility?
No, CAGR assumes steady, uninterrupted compound growth year over year. It smooths out market ups and downs, which is why it is referred to as a "smoothed" rate of return.
Can CAGR be negative?
Yes. If your final investment value is lower than your initial investment value, the CAGR will register as a negative percentage, indicating an annualized loss.