CAGR Calculator
Compute the compound annual growth rate of any investment.
What is CAGR?
The Compound Annual Growth Rate is the smoothed annual return that would take you from an initial value to a final value over a period — as if it grew at the same rate every year. It is the fairest way to compare investments of different durations.
The formula
CAGR = (Final ÷ Initial)^(1 ÷ years) − 1. Unlike absolute return, it accounts for the time taken, so a 100% gain in 2 years (41% CAGR) beats 100% in 5 years (15% CAGR).
Frequently asked questions
CAGR vs absolute return?
Absolute return is the total percentage gain ignoring time. CAGR annualises it, so you can compare a 3-year and a 10-year investment on equal footing.