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CAGR Calculator
Find the compound annual growth rate of any investment. Enter what it was worth at the start, what it's worth now, and how many years passed — you'll get the steady yearly rate plus the total return.
Values
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CAGR—
Absolute return—
Total gain—
Growth multiple—
How it's calculated
CAGR is the constant yearly rate that would grow your initial value into the final value over the period. It's found by dividing the final value by the initial value, taking the year-th root, and subtracting one. Unlike a simple total return, it accounts for compounding, so investments of different lengths can be compared fairly.
CAGR = (final ÷ initial)^(1 ÷ years) − 1. Absolute return = (final − initial) ÷ initial.
Frequently asked questions
Does CAGR show volatility?
No — it's a smoothed average. Two investments with the same CAGR can have very different year-to-year swings.
Can CAGR be negative?
Yes, if the final value is below the initial value the CAGR is negative, showing an annual loss rate.
Use it for SIPs?
CAGR suits a single lumpsum. For staggered investments like SIPs, XIRR is the right measure.