CAGR Calculator

Calculating CAGR takes less than a minute:

1. Enter the initial investment value (the amount you started with).
2. Enter the final investment value (the current or final amount).
3. Select the investment duration in years.
4. Click Calculate to instantly see your CAGR percentage.

The calculator gives you an instant, accurate annualized growth rate — no manual calculation required.

CAGR (Compound Annual Growth Rate) is the average annual growth rate of an investment over a specified period, assuming the investment grows at a steady, compounded rate every year. It smooths out the year-to-year volatility of an investment's returns and gives you a single, easy-to-understand growth percentage.

CAGR is widely used to compare the performance of different investments — such as mutual funds, stocks, or business revenue — over the same time period, even if their actual year-by-year returns fluctuated.

CAGR is calculated using the following formula:

CAGR = (Final Value / Initial Value)^(1/n) − 1

Where:

• Final Value = The value of the investment at the end of the period
• Initial Value = The value of the investment at the start of the period
• n = Number of years

For example, if you invested ₹1,00,000 and it grew to ₹2,00,000 over 5 years, your CAGR would be approximately 14.87%, meaning your investment grew at an average rate of 14.87% per year.

It's important not to confuse CAGR with absolute return:

• Absolute Return — Simply the total percentage gain or loss over the entire investment period, without accounting for time.
• CAGR — The annualized growth rate, which accounts for the time period and shows what your average yearly return would have been.

For example, a 100% absolute return over 5 years sounds impressive, but the CAGR would be about 14.87% per year — a more realistic picture of annual performance. CAGR is especially useful for comparing investments held over different time periods.

CAGR is a valuable metric for several reasons:

1. Easy Comparison — It allows you to compare mutual funds, stocks, or other investments on a like-for-like annualized basis.
2. Smooths Volatility — It ignores year-to-year fluctuations and gives a single average growth figure.
3. Better Decision Making — Helps investors evaluate whether an investment's growth has been consistent with their financial goals.
4. Limitation to Note — CAGR assumes smooth, steady growth and does not reflect actual volatility or risk during the investment period.

Our calculator helps you evaluate your investments smartly by allowing you to:

• Get instant, accurate CAGR calculations
• Compare the annualized performance of different investments
• Understand your real average yearly growth rate
• Make informed decisions when choosing between investment options