CAGR Calculator
Calculate CAGR to understand the year-over-year growth rate of your investments over timeCAGR
15.7%
Total Growth
₹1400
Growth Multiple
2.40x
Understanding CAGR
Compound Annual Growth Rate (CAGR) represents the average annual growth rate of an investment over a specified time period. It provides a more accurate picture of investment performance compared to simple averages.When to Use CAGR?
- Evaluating mutual fund performance
- Comparing different investment options
- Analyzing company growth rates
- Projecting future investment values
Limitations of CAGR
- Only considers single investment
- Does not account for investment volatility
- Assumes stable growth over the entire period
How to Use This CAGR Calculator?
- Enter your initial investment amount
- Input the final investment value
- Specify the time period in years
- Click "Calculate CAGR" to get your results
Absolute Return vs CAGR vs XIRR
In short,- Absolute returns does not consider time at all. It's a simple average
- CAGR calculates annualized returns, but considers that all the investments were done at the start of the duration and all withdrawals were at the end. It works best when there are only two transaction entry - one investment, one withdrawal.
- IRR takes time into account, but works when all the portfolio transaction are periodic. Eg. a SIP investment, or a loan
- XIRR considers timing for all individual transactions in a portfolio, including irregular timing
Understand the differences and calculations with example in our guide.Why use our CAGR calculator?
It's a simple & free calculator that computes CAGR in your browser, with no data is sent to the server.