CAGR Calculator
Calculate Compound Annual Growth Rate (CAGR), absolute returns, and projected future investment values. Compare multiple growth scenarios free in your browser.
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How to use CAGR Calculator
- 1
Choose your mode: Calculate CAGR or CAGR Future Value.
- 2
Enter beginning value, ending value/expected rate, and duration.
- 3
Compare different annual growth rate scenarios side-by-side.
Capabilities
- Mode-based CAGR and Future Value evaluations
- Side-by-side comparison of 3 CAGR rate scenarios
- Interactive tables showing yearly asset growth
- Safely handles zero/negative investment boundaries
How to Calculate Compound Annual Growth Rate (CAGR)
Comparing the performance of mutual funds, stocks, real estate, and fixed deposits requires a standardized metric that accounts for compounding over different holding periods. Compound Annual Growth Rate (CAGR) standardizes returns into a single annual percentage, allowing objective side-by-side performance evaluation.
CAGR represents a smoothed geometric mean. It does not reflect market drawdowns, maximum peak-to-trough losses, or volatile intra-year swings experienced by investors.
Enter your purchase price, current market valuation, and holding duration to calculate your exact annualized return percentage and wealth multiplier.
Input a target expected CAGR to project future asset value over time, comparing conservative, moderate, and aggressive growth scenarios.
Worked CAGR Example
Suppose you purchased an investment for $20,000 and sold it 6 years later for $45,000:
Absolute Return: [($45,000 - $20,000) / $20,000] * 100 = 125.0% total gain.
CAGR: [($45,000 / $20,000)^(1 / 6) - 1] * 100 = 14.47% annualized return.
Your money compounded at a robust 14.47% per year, multiplying your original capital by 2.25x.
For future lumpsum compounding and interactive growth curves, use Lumpsum Calculator.
This tool operates in a sandbox directly inside your web browser. All parsing, processing, and downloads are rendered locally. Your file size, metadata, and contents never cross the network. It works completely offline.
Frequently Asked Questions
What is Compound Annual Growth Rate (CAGR)?
Compound Annual Growth Rate (CAGR) measures the annualized mean growth rate of an investment over a specified period longer than one year, smoothing out intermittent annual volatility.
What is the mathematical formula for CAGR?
CAGR = [(Ending Value / Beginning Value)^(1 / Time in Years) - 1] * 100. It requires only three variables: starting capital, ending valuation, and total duration.
What is the difference between CAGR and Absolute Return?
Absolute return measures total percentage gain without regard to how long it took (e.g. a 100% gain). CAGR incorporates the time dimension, showing that a 100% gain over 3 years is 26% annually, while over 10 years it is only 7.2% annually.
Does a high CAGR mean the investment gained that exact amount every year?
No. CAGR is a geometric average that smooths volatile annual returns into a steady imaginary rate. An asset with a 15% CAGR might have gained +30% in year one, lost -10% in year two, and surged +25% in year three.
Are my portfolio values kept private?
Yes. All CAGR arithmetic runs locally in your browser memory; your portfolio valuations are not sent to WebTorq for processing.