CAGR Calculator

CAGR (Compound Annual Growth Rate) is the mean annual growth rate of an investment over a specified period longer than one year. It smooths out volatility to show the equivalent steady growth rate.

Absolute return shows total growth (e.g., 150% over 5 years) while CAGR shows the equivalent annual rate (e.g., 20.11% per year). CAGR is better for comparing investments of different durations.

CAGR = (Ending Value / Beginning Value)^(1/Years) - 1. It calculates the rate at which an investment would have grown if it grew at a steady rate annually.

It depends on the asset class. Fixed deposits: 5–7%, Bonds: 6–9%, Large-cap stocks: 10–14%, Small-cap stocks: 14–20%. Compare CAGR against inflation (6–7%) to see real returns.

No, CAGR smooths out all yearly fluctuations and shows only the equivalent steady growth rate. It does not reflect the actual year-to-year volatility of your investment.