Input type
Growth Rate Analyser
CAGR calculator for investment growth
Enter initial investment value, final value, and number of years to calculate the Compound Annual Growth Rate (CAGR) and absolute return.
CAGR computation
Absolute return
Profit / loss
Best for
Performance analysis
Output
CAGR %
Enter investment values
Provide the initial value, final value, and duration in years.
Before you calculate
- Initial value is the amount you invested or the starting NAV/price.
- Final value is the current or redemption value.
- Duration can be fractional (e.g., 2.5 for 2.5 years).
Why use CAGR?
CAGR smooths out volatility and gives a single annualised rate that represents consistent year-over-year growth, making it ideal for comparing different investments.
About CAGR
CAGR = (Final Value / Initial Value)^(1/n) − 1. It represents the rate at which an investment would have grown if it grew at a steady rate each year.
CAGR vs absolute return
Absolute return is the total % change. CAGR divides that across years to give a per-year figure, making multi-year comparisons fair.
CAGR vs XIRR
CAGR works for single lumpsum investments. XIRR is used when there are multiple cash flows at different times (e.g., monthly SIP).
Benchmark comparison
Compare your fund CAGR against its benchmark index CAGR for the same period to assess alpha generation by the fund manager.
Limitation of CAGR
CAGR hides year-to-year volatility. A fund can show 12% CAGR while having very volatile annual returns. Use standard deviation alongside CAGR.