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CAGR Calculator

Calculate your Compound Annual Growth Rate. Instantly discover the true, smoothed annual return of your investments over any period of time.

analytics Investment Data

Yr
Mo

Absolute Return

0%

₹0

CAGR (Annual Growth)

0%

Per Year Average

Final Value

₹0

Total Value

Projected CAGR Growth Journey

Time Projected Value (Based on CAGR)

How Does a CAGR Calculator Work?

Compound Annual Growth Rate (CAGR) is one of the most accurate ways to calculate and determine returns for anything that can rise or fall in value over time. Unlike Absolute Return, which just gives you the total percentage gained or lost, CAGR tells you the smoothed out, annualized rate your investment grew at every single year.

The Mathematical Formula

The CAGR calculator uses the standard financial compounding formula:

$CAGR = \left[ \left(\frac{Final Value}{Initial Value}\right)^{\frac{1}{Years}} - 1 \right] \times 100$

Frequently Asked Questions

Why is CAGR better than Absolute Return? expand_more
Absolute return can be misleading. If your investment grew by 100%, that sounds amazing. But if it took 20 years to grow 100%, that is actually a very poor investment (a CAGR of just 3.5%). CAGR accounts for the time value of money, making it the perfect metric to compare different investments (like Mutual Funds vs. Real Estate vs. Gold).
Can CAGR be negative? expand_more
Yes! If your Final Value is less than your Initial Investment, your investment lost money, resulting in a negative CAGR. Our calculator perfectly handles and displays negative growth scenarios.