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CAGR Calculator

Calculate the Compound Annual Growth Rate of your investments. CAGR smooths out returns and provides a true picture of investment performance.

CAGR Calculator Inputs
Calculate the compound annual growth rate of your investment
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CAGR Results
Your investment growth analysis

Enter your investment values to calculate CAGR

What is CAGR?

CAGR (Compound Annual Growth Rate) measures the mean annual growth rate of an investment over a specified time period longer than one year. It represents one of the most accurate ways to calculate and determine returns for anything that can rise or fall in value over time.

CAGR Formula

CAGR = [(Final Value / Initial Value)^(1/n) - 1] × 100

Where n = number of years

Why Use CAGR?

  • Smooths Volatility: CAGR ignores market ups and downs to show true growth
  • Easy Comparison: Compare different investments on an apples-to-apples basis
  • Realistic Returns: Shows actual compounded returns, not simple averages
  • Long-term View: Perfect for evaluating multi-year investment performance

CAGR vs Absolute Returns

CAGR

Shows annualized growth rate. A 100% return over 5 years = ~14.9% CAGR

Absolute Return

Shows total percentage gain. ₹1L to ₹2L = 100% absolute return