CAGR Calculator

What is CAGR?

The Compound Annual Growth Rate (CAGR) is one of the most accurate ways to calculate returns for anything that rises or falls in value over time.

Unlike absolute returns, CAGR accounts for the time value of money.

The Formula

FV: Final Value | PV: Initial Value | n: Years

Why Use CAGR?

Standard metrics can be misleading. CAGR provides a "smoothed" annual rate, ignoring year-to-year volatility.

Limitations

CAGR assumes steady growth and doesn't account for SIPs or periodic withdrawals from the investment.