Calculate the Compound Annual Growth Rate (CAGR), annualized return, total profit and investment performance using your beginning value, ending value and investment period.
Enter your beginning investment value, ending value and the total investment period.
The calculator applies the CAGR formula to determine the average annual growth rate of your investment.
Instantly view CAGR, total profit, annualized return and overall investment performance.
Compound Annual Growth Rate (CAGR) is the average annual rate at which an investment grows over a specific period, assuming the profits are reinvested every year. CAGR smooths out yearly fluctuations and provides a single annual growth rate that makes it easier to compare different investments.
CAGR converts total investment growth into an equivalent yearly growth rate, making investment comparisons much easier.
It allows investors to compare stocks, mutual funds, ETFs and business performance over different time periods.
CAGR = [(Ending Value ÷ Beginning Value)(1 ÷ Years) − 1] × 100
Where Beginning Value is the initial investment, Ending Value is the final investment value and Years is the investment duration.
Absolute Return Formula
Absolute Return = ((Ending Value − Beginning Value) ÷ Beginning Value) × 100
| Feature | CAGR | Absolute Return |
|---|---|---|
| Time Factor | Includes Time | Ignores Time |
| Growth Type | Annualized | Overall Growth |
| Best For | Long-Term Comparison | Short-Term Performance |
| Investment Analysis | Excellent | Basic |
Although CAGR is an excellent performance metric, it assumes steady growth every year. Real-world investments often experience market volatility, gains and losses that CAGR does not fully reflect.
Suppose you invested ₹100,000 and after 5 years your investment grew to ₹180,000.
The CAGR (Compound Annual Growth Rate) Calculator helps you measure the average annual growth rate of an investment over a specified period. Unlike absolute return, CAGR considers the effect of time, making it one of the most reliable metrics for comparing long-term investment performance.
Whether you're evaluating stocks, mutual funds, ETFs, real estate, business revenue or retirement investments, this calculator provides a clear picture of annualized growth and overall investment performance.
This CAGR Calculator provides estimated annualized growth rates based on the values you enter. Actual investment performance may vary due to market fluctuations, taxes, fees, dividends, additional investments or withdrawals. This calculator is intended for educational and financial planning purposes only and should not be considered investment advice.
CAGR (Compound Annual Growth Rate) represents the average annual growth rate of an investment over a specific period while accounting for the effect of compounding.
Absolute return measures total growth, whereas CAGR measures the equivalent annual growth rate by considering the investment period.
Yes. If the ending value is lower than the beginning value, the CAGR will be negative, indicating an average annual loss.
CAGR provides a standardized annual growth rate, making it easier to compare investments with different durations.
Yes. This calculator supports both years and months by converting the selected period into years.
Yes. CAGR is widely used to evaluate the long-term performance of stocks, mutual funds, ETFs and other investments.
No. CAGR measures historical or estimated growth and should not be considered a guarantee of future investment performance.
Yes. It is completely free and works on desktop, tablet and mobile devices.
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