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CAGR Calculator

Calculate Compound Annual Growth Rate

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Quick Examples

CAGR Calculator by Return Rate

5% CAGR 10% CAGR 12% CAGR 15% CAGR 20% CAGR

CAGR Calculator by Years

3 Years CAGR 5 Years CAGR 10 Years CAGR 15 Years CAGR

What is CAGR?

CAGR (Compound Annual Growth Rate) is the mean annual growth rate of an investment over a specified period longer than one year. It represents the constant rate at which an investment would grow if it grew at a steady rate annually.

CAGR Formula: 
CAGR = (Ending Value ÷ Beginning Value)^(1/n) - 1

How to Calculate CAGR

  1. Enter Initial Value: The starting amount of your investment
  2. Enter Final Value: The ending amount after the investment period
  3. Enter Time Period: Number of years the investment was held
  4. Get CAGR: The annualized growth rate of your investment

Example Calculation

Investment: ₹1,00,000 grows to ₹2,00,000 in 5 years
Calculation: (2,00,000 ÷ 1,00,000)^(1/5) - 1
CAGR: 14.87% per annum

This means: Your investment grew at an average rate of 14.87% each year.

Why Use CAGR Calculator?

  • ✓ Compare Investments: Evaluate different investments with varying time periods
  • ✓ Smooth Volatility: CAGR ignores short-term fluctuations
  • ✓ Goal Planning: Calculate required growth rate for financial goals
  • ✓ Performance Measurement: Track portfolio performance over time
  • ✓ Business Growth: Measure revenue or profit growth rates

Frequently Asked Questions

What is a good CAGR?
A good CAGR depends on the investment type and market conditions. For equity mutual funds: 10-15% is good. For fixed deposits: 6-8%. For startups: 20-30%+. Generally, anything above inflation (6-7%) is positive real growth.
What's the difference between CAGR and absolute return?
Absolute return is the total percentage gain over the entire period (e.g., 100% over 5 years). CAGR is the annualized return (e.g., 14.87% per year). CAGR is better for comparing investments with different time periods.
How is CAGR different from average annual return?
Average annual return is a simple arithmetic average of yearly returns. CAGR is a geometric average that accounts for compounding. CAGR is more accurate for measuring actual investment growth.
Can CAGR be negative?
Yes, if the final value is less than the initial value, the CAGR will be negative, indicating a loss over the investment period.
What is the Rule of 72 for CAGR?
The Rule of 72 estimates how long it takes to double your money: Years to double = 72 ÷ CAGR%. At 12% CAGR, money doubles in ~6 years. At 15% CAGR, doubles in ~4.8 years.
Is this CAGR calculator free?
Yes, completely free! No sign-up, no credit card, no hidden fees. Your calculations are private and stay in your browser.

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CAGR Examples for Different Investment Scenarios

📊 Mutual Fund SIP

₹10,000/month for 10 years = ₹20 Lakhs final value
Investment: ₹12 Lakhs | CAGR: 12.5%

🏠 Real Estate

Property bought for ₹50 Lakhs, sold for ₹1 Cr in 8 years
CAGR: 9.05% per annum

📈 Stock Market

₹1 Lakh invested in stocks, grew to ₹3 Lakhs in 7 years
CAGR: 17% per annum

💼 Business Revenue

Business revenue grew from ₹50 Lakhs to ₹2 Cr in 5 years
CAGR: 31.95% per annum

Analyze Your Investment Growth

Calculate CAGR to compare investments and measure your portfolio's true annualized performance.

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