About the CAGR Calculator
CAGR (Compound Annual Growth Rate) is the steady yearly rate at which an investment would have grown from its starting value to its final value. It makes it easy to compare investments held for different periods.
Enter the initial value, final value and the number of years.
Formula used
CAGR = (Final value ÷ Initial value)^(1 ÷ years) − 1.
Frequently asked questions
Does CAGR show the real path of returns?
No. It smooths the ups and downs into one steady rate.
When should I use XIRR instead?
Use XIRR if you invested at different times, such as through a SIP.
Can CAGR be negative?
Yes, if the final value is lower than the initial value.