CAGR vs Absolute Return Calculator — What's the Difference?

An investment doubling in 5 years has 100% absolute return but only 14.87% CAGR. One tripling in 10 years has 200% absolute return but just 11.61% CAGR. CAGR normalises returns to a per-year basis for fair comparison.

Initial Investment

₹1,00,000

Final Value

₹2,50,000

CAGR

20.11%

CAGR = (Final Value / Initial Value)^(1/Years) − 1. Used to measure the annualised growth rate of an investment, portfolio, or business metric over time.

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Calculated with CalcHub