What is a CAGR Calculator?
A CAGR Calculator finds the compound annual growth rate between a starting value and an ending value over a number of years. It also shows the absolute return.
CAGR smooths out ups and downs and gives one yearly rate that would take the start value to the end value. It is commonly used to compare mutual funds, stocks and business growth. It does not show how bumpy the path was.
How to use the CAGR Calculator
- Enter initial value.
- Enter final value.
- Enter duration.
- Tap Calculate to see the result.
- Tap Reset to clear the fields and try again.
Who should use it
- Investors comparing fund or stock performance
- Business owners tracking sales growth
- Students learning about growth rates
Key terms
- Initial value
- The value at the start.
- Final value
- The value at the end.
- CAGR
- The steady yearly growth rate that links the two.
- Absolute return
- Total growth as a percentage, without considering time.
Frequently asked questions
Is CAGR the same as average return?
No. CAGR accounts for compounding; a simple average does not.
Can CAGR be negative?
Yes, when the final value is lower than the initial value.
Should I use CAGR for SIPs?
No. For investments made at different times, use the XIRR Calculator.
Does CAGR show risk?
No. Two investments with the same CAGR can have very different ups and downs.
Is my data stored?
No. Everything you enter stays in your browser and is cleared when you close the page.
Last updated: 1 November 2026