CAGR Calculator
Quickly calculate the Compound Annual Growth Rate (CAGR) of any investment or business metric over a specific time period.
14.87%
Compound Annual Growth Rate
Value Growth Projection
Growth Summary
Initial Value
₹1,00,000
Final Value
₹2,00,000
Absolute Gain / Loss
+₹1,00,000
What this means
If you invested ₹1,00,000 and it grew to ₹2,00,000 over a period of 5 years, your investment grew at a steady compounded rate of 14.87% every single year.
CAGR = (Final / Initial) ^ (1 / Years) - 1Online CAGR Calculator
The Compound Annual Growth Rate (CAGR) is the most accurate way to measure the growth of an investment over multiple time periods. It smooths out volatility and provides a single, annualized rate of return.
- Analyze Investments: Easily compare mutual funds, stocks, and real estate returns.
- Business Metrics: Track revenue, profit, or user growth over several years.
- Instant & Accurate: Enter your values and get the CAGR instantly.
- Private & Secure: All calculations happen locally in your browser.
How to Use the Calculator
Find your growth rate in 3 easy steps:
- Initial Value: Enter the starting amount of your investment or metric.
- Final Value: Enter the current or ending value.
- Time Period: Specify the number of years between the initial and final values (decimals like 2.5 are supported).
- Result: Get your annualized growth rate (CAGR), absolute return, and a growth projection chart instantly.
Important Notes on CAGR
While CAGR is a powerful metric for comparing growth rates, it has some limitations you should be aware of.
Smoothed Growth
CAGR assumes constant compounded growth. It does not reflect the actual year-by-year volatility or performance.
Single Cash Flow
It is designed for a single initial investment. For multiple deposits or withdrawals, an XIRR calculator is more appropriate.
Comparison Tool
Its best use is for comparing the historical returns of different assets side-by-side on an equal footing.
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Frequently Asked Questions
CAGR stands for Compound Annual Growth Rate. It is the 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 of the investment's lifespan.
The formula is: CAGR = ((Final Value / Initial Value) ^ (1 / Years)) - 1. Our calculator applies this formula automatically to your inputs to find the annualized growth rate.
Yes, CAGR is one of the most accurate ways to calculate and determine returns for anything that can rise or fall in value over time, like mutual funds, stocks, and real estate.
Absolute return only tells you the total percentage gained or lost (e.g. 100% gain). CAGR tells you what the smoothed annualized yield was over the time period, making it easier to compare investments across different timeframes.
Yes! This calculator is completely free to use. All calculations are performed instantly in your browser, meaning your financial data never leaves your device and is 100% private.