Free CAGR Calculator Online – Calculate cagr calculator
Calculate the Compound Annual Growth Rate of your investments.
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₹
Years
CAGR (Annualized Return)
14.87%
Absolute Return +100.00%
Total Profit / Loss ₹ 10,000
What is a CAGR Calculator?
CAGR (Compound Annual Growth Rate) is a financial metric used to measure the mean annual growth rate of an investment over a specified time period longer than one year. It smooths out the volatility of returns by assuming a steady growth rate.
Why use CAGR instead of Absolute Returns?
Absolute return simply shows the total gain or loss as a percentage of the initial investment. It ignores the time it took to achieve that return. For example, a 50% absolute return sounds great, but if it took 10 years, the annualized rate (CAGR) is much lower. CAGR gives you a standardized way to compare the performance of different investments across varying time periods.
Frequently Asked Questions
CAGR stands for Compound Annual Growth Rate. It represents the smooth, annualized rate of return of an investment over a specified time period, assuming the investment grew at a steady rate and profits were reinvested.
The formula for CAGR is: [(Final Value / Initial Value) ^ (1 / Number of Years)] - 1.
Absolute return only tells you the total percentage gained or lost, regardless of time. CAGR normalizes the return over an annual basis, making it easier to compare investments that were held for different durations.
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