CAGR Calculator

CAGR (Compound Annual Growth Rate) is the single annualised rate that smooths an investment's growth (or decline) over a period. Unlike absolute return, CAGR accounts for the time value, making it the correct metric to compare investments held for different durations — for example, a stock held 3 years versus a mutual fund held 7 years.

CAGR annualises the growth rate:

CAGR = (End / Begin)^(1 / years) − 1, then × 100

CAGR gives the equivalent annual rate that
takes the beginning value to the ending value.

Absolute return = (End − Begin) / Begin × 100

Enter the initial value of your investment, its current or final value, and the holding period in years. The calculator returns the CAGR and absolute return. Use fractional years (e.g. 2.5) for partial-year holdings.