Why is CAGR more meaningful than the total return rate?
A 50% profit over one month is completely different from a 50% profit over 5 years, even though the percentage is the same. CAGR (compound annual growth rate) converts any return into an "equivalent annual rate," allowing you to compare two investments with different durations on a fair, unified basis.
CAGR isn't calculated for periods under a week, since a very small time denominator inflates any small difference into unreasonable annualized rates — the calculator intentionally omits this figure instead of showing a misleading one.
FAQ
What's the difference between total return and CAGR?
The total return rate measures overall profit regardless of duration. CAGR "spreads" this profit across the number of years to give you an annual rate comparable to other investments.
Are fees deducted before or after calculating profit?
Fees are deducted from the final value first, then net profit and return are calculated on the net value after fees — so the result reflects your actual real return.
Source
Standard ROI and CAGR (compound annual growth rate) formulas.
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Last updated: July 2026
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