Finance Utility Toolkit
Smart Compound Annual Growth Rate Calculator
Determine your annual growth rate and wealth multiplier for .
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CAGR %
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Total Profit
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Multiplier
Absolute Growth: 0%
Precision Logic ( Edition)
OTechy CAGR Master is the definitive investment performance utility for . It computes the Compound Annual Growth Rate—the gold standard for measuring smoothed investment returns—enabling investors to evaluate stocks and mutual funds with live comma-formatted inputs and high-precision logic.
How to Use the Smart CAGR Master
- 1 Enter Principal: Input the amount you originally invested. Commas are added live for magnitude verification.
- 2 Current Portfolio: Input the final value of your investment and the number of years held.
- 3 Analyze & Export: Review your Multiplier and CAGR. Click "Save PDF" to download your professional growth analysis.
Why CAGR is the Best Way to Track Returns in
Simple ROI can be misleading because it ignores the factor of time. **CAGR (Compound Annual Growth Rate)** provides the constant rate of return that would be required for an investment to grow from its beginning balance to its ending balance, assuming the profits were reinvested at the end of each year.
Investment Growth & CAGR FAQs
What is a Wealth Multiplier? It shows how many times your initial capital has grown (e.g., 2.5x means a 150% gain).
Is CAGR better than simple interest? Yes. CAGR accounts for compounding, which reflects how real-world investments actually grow.
Does this tool store my data? No. All OTechy financial utilities are client-side only. Your numbers never leave your browser.
Can I use this for business growth? Absolutely. CAGR is standard for measuring annual revenue growth (ARR) or user expansion.
What exactly does CAGR stand for? It stands for Compound Annual Growth Rate. It represents the mean annual growth rate of an investment over a specified period of time longer than one year.
How is CAGR different from Absolute Return? Absolute return only shows the total gain or loss percentage. CAGR tells you what your annual return was "on average" each year, accounting for the effect of compounding.
Can CAGR be negative? Yes. If your final value is lower than your initial investment, the CAGR will be negative, indicating an average annual loss over that period.
Does CAGR account for market volatility? No. CAGR "smooths" out the returns. It assumes the investment grew at a steady rate, ignoring the ups and downs that happened in between the start and end dates.
Is CAGR useful for SIP (Systematic Investment Plans)? CAGR is best for "Lump Sum" investments. For monthly SIPs, **XIRR** (Extended Internal Rate of Return) is usually a more accurate measure, though CAGR is still a great baseline for overall growth.
What is a "Good" CAGR? This depends on the asset class. Historically, stock market indices range between 10-12%, while fixed deposits or bonds may offer 5-7%. Always compare CAGR against inflation.
How does the "Time" factor affect CAGR? The longer the time period, the more powerful compounding becomes. Even a small difference in CAGR (e.g., 10% vs 12%) can lead to a massive difference in final wealth over 20 years.
Can I calculate CAGR for Real Estate? Yes. Input your purchase price as the "Initial Value" and the current market value (minus selling costs) as the "Final Value" to see your property's annual growth rate.
What is the "Rule of 72"? It is a quick way to estimate when your money will double. Divide 72 by your CAGR. For example, a 12% CAGR will double your money in approximately 6 years (72 / 12 = 6).
Does CAGR include dividends or interest payouts? To get an accurate CAGR, you should add any dividends or interest received back into the "Final Value" if those gains were reinvested.
Why does the Wealth Multiplier matter? While percentages can be abstract, the multiplier (e.g., 3x or 5x) gives you a concrete look at how much your purchasing power has expanded relative to your starting point.