CAGR Calculator
Measure growth with Scientific Precision.
Annual Growth Rate
Compounded Annually
What is CAGR?
Compound Annual Growth Rate
CAGR represents the mean annual growth rate of an investment over a specified time period longer than one year. It's one of the most accurate measures to compare the performance of different investments, as it smooths out volatility and provides a "normalized" return rate.
The Formula
[(EV/BV)1/n] - 1
EV = Ending Value
BV = Beginning Value
n = Number of Years
When to Use CAGR
Understanding the right contexts for this metric
Stock Analysis
Compare stock performance across different time periods and market conditions
Mutual Funds
Evaluate fund returns against benchmark indices like Nifty or Sensex
Real Estate
Assess property value appreciation over years of ownership
Business Growth
Track revenue, profit, or user base growth for startups and companies
Absolute Returns
Use For: Short Term (< 1yr)
Simple total gain/loss percentage. Doesn't account for time period.
CAGR
Use For: Long Term (> 1yr)
Annualized return assuming constant growth. Smooths volatility.
XIRR
Use For: Multiple Txns
Accounts for irregular cash flows (SIPs, withdrawals).