Calculators / Investments & growth
Investments & growth
CAGR / Returns
What return did you actually earn? Your fund brags in bursts. CAGR tells the annual truth.
About the CAGR calculator
CAGR is the smooth yearly rate that turns your starting amount into your ending amount. It is the honest way to compare very different investments.
Why not just use total return?
A 50 percent total gain sounds great until you learn it took ten years. CAGR converts it to a per-year rate, so you can compare a property, a fund, and an FD on the same scale.
What is a good CAGR?
There is no single number. Compare it with inflation and with what a plain index fund would have done over the same years. Beating those two is the real test.
Does CAGR show the ride?
No. It hides the ups and downs. Two investments with the same CAGR can feel completely different to hold.