CAGR Calculator
Work out the compound annual growth rate (CAGR) between a starting and ending value, plus the absolute return and total gain.
About this calculator
A CAGR calculator tells you the compound annual growth rate of an investment — the steady yearly rate that would take it from its starting value to its ending value over a given period. It's the fairest way to compare returns across investments held for different lengths of time.
How it works
CAGR = (Final ÷ Initial)^(1 ÷ years) − 1, shown as a percentage. The calculator also shows the absolute (total) return and the rupee gain.
Worked example
An investment growing from ₹1,00,000 to ₹2,50,000 over 5 years has a CAGR of about 20.11%, even though the absolute return is 150%.
Projecting future growth instead? Try the lumpsum calculator or compound interest calculator.
Why use this CAGR calculator
The true annual growth rate
CAGR smooths out an investment's start and end value into a single yearly growth rate, so you can compare very different investments fairly.
Cuts through noisy returns
Unlike a simple average, CAGR reflects actual compounding, giving an honest picture of how fast money really grew.
Just three inputs
Enter the initial value, final value and number of years — no need for the year-by-year figures.
Common use cases
- Compare the growth of a mutual fund, stock or property
- Check whether an investment beat inflation over the years
- Report the annualised return of a portfolio
- Benchmark two investments held for different lengths of time
Frequently asked questions
CAGR (Compound Annual Growth Rate) is the smoothed annual rate at which an investment grows from its starting value to its ending value, as if it grew at a steady rate each year.
CAGR = (Final value ÷ Initial value)^(1 ÷ years) − 1, expressed as a percentage. For example, growing ₹1,00,000 to ₹2,50,000 in 5 years is a CAGR of about 20.1%.
Absolute return is the total percentage gain over the whole period, ignoring time. CAGR annualises that gain, so you can compare investments held for different durations fairly.
Yes. If the final value is lower than the initial value, CAGR is negative, showing an average annual decline.
Yes. The calculation runs in your browser and nothing you enter is stored.
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