About this CAGR calculator
Compound annual growth rate is the mean annual growth rate of an investment over a period, assuming profits are reinvested. It smooths out volatility and gives a single, comparable number.
Enter the initial value, final value and number of years. The tool computes the CAGR as a percentage and the absolute return. It is useful for comparing investments with different tenures.
CAGR does not reflect volatility or intermediate dips. An investment that ends at the same value has the same CAGR even if it was bumpy along the way.
Use it to compare mutual funds, stocks or portfolios over a common period. Pair it with ROI for a fuller picture.