Cagr Calculator

Initial Investment₹

Final investment₹

Duration of investmentYr

CAGR is 37.97%

CAGR (Compound Annual Growth Rate) is the rate of return that would be required for an investment to grow from its beginning balance to its ending balance, assuming the profits were reinvested at the end of each year of the investment's lifespan.

How is CAGR Calculated?

To calculate the CAGR, you divide the final value of the investment by the initial value. You then raise this result to the power of one divided by the number of years. Finally, you subtract one from the subsequent result.

Formula: CAGR = [(Final Value / Initial Value) ^ (1 / Number of Years)] - 1

FAQ

What does CAGR tell you?

CAGR is a mathematical formula that provides a smoothed rate of return. It measures the growth of an investment as if it had grown at a steady rate on an annually compounded basis, which helps in comparing the returns of different assets.

Is CAGR the same as absolute return?

No, absolute return only measures the total percentage gained or lost over the entire period, ignoring the time taken. CAGR takes into account the time period and represents an annualized growth rate.

Can CAGR be negative?

Yes. If the final value of your investment is less than the initial value, the CAGR will be negative, indicating an annualized loss over the time period.