What is the formula to figure out "Compound Annual Growth Rate (CAGR)" from absolute returns? Say, if 100% is the absolute return in 5 years tenure, then how would I find what is the CAGR through that 5 years?

1 Answer 1


Found it after mathematically evaluating it and finding a correlation between the two as -

CAGR = {[(AR+1)^(1/r)]-1}*100


CAGR - Compound annual growth rate

AR - Absolute Return

r - term in number of years

Since AR = [(FV/IV)-1]*100

and CAGR = [((FV/IV)^(1/r))-1]*100


FV - Future Value and

IV - Initial Value

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