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InnocentInvestor

CAGR Returns Calculator.

Calculate compound annual growth rates for multi-year investments. Compare performance across diverse assets. (Debug Type: cagr)

📊 CAGR Inputs

Compound Annual Growth Rate20.11%Absolute Investment Return150.0%

✏️ How is this calculated?

CAGR is the constant annual rate your money grew at, smoothing out stock market volatility. Unlike absolute returns, CAGR accounts for the **time-value** of compounding.

Formula:
CAGR = ((Final / Initial) ^ (1 / Years)) - 1

Why CAGR Matters to Investors

Absolute returns can be misleading because they ignore time. If an investment doubles in 2 years, that is excellent. If it doubles in 10 years, it is sub-par. CAGR normalizes growth on an annual basis, allowing you to accurately compare a mutual fund to a fixed deposit or gold.