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Tools / Compound annual growth rate CAGR calculator

Compound annual growth rate CAGR calculator

Compound Annual Growth Rate (CAGR) calculator. Compute annualized returns on investments, evaluate wealth multipliers, and compare performance against benchmark index and fixed deposit baselines.

Runs entirely in your browser

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About this tool

Compound Annual Growth Rate (CAGR) is the single annual rate at which an investment would have grown to its final value over the period — the smoothed yearly return that makes different investments comparable regardless of how long they were held. This calculator computes CAGR from a start value, an end value and the number of years, and shows the wealth multiplier and yearly milestones.

CAGR is more meaningful than total return for judging performance, because it normalises for time: a 100% total gain is excellent over two years and mediocre over twenty, and CAGR captures that difference in one figure. Comparing your CAGR against a benchmark index or a fixed-deposit baseline shows whether the investment actually earned its risk.

It runs in your browser, so your figures stay private. Note that CAGR describes an average smoothed rate; actual year-to-year returns will have varied around it.

Frequently asked questions

What is CAGR?
The compound annual growth rate — the constant yearly rate that would take an investment from its start value to its end value over the period. It smooths out the ups and downs into one annual figure.
How is CAGR different from average return?
CAGR is the geometric growth rate that reflects compounding, whereas a simple average of yearly returns can overstate performance. CAGR is the more accurate measure of growth over time.
Why compare CAGR to a benchmark?
Comparing against an index or a fixed-deposit baseline shows whether an investment beat a passive or risk-free alternative, which is the real test of performance.
Are my figures private?
Yes. The calculation runs in your browser, so nothing you enter is uploaded.

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