CAGR Calculator

Calculate the Compound Annual Growth Rate (CAGR) to understand the average annual growth of your investment.

Investment Details

1,00,000
2,00,000
5 Years

Calculated CAGR

0.00 %

Total Growth

0

Total Growth (%)

0.00 %

Year-wise Growth Breakdown

Year Starting Value Growth This Year Ending Value

CAGR Calculator - Compound Annual Growth Rate Calculator

Free CAGR calculator online. Calculate Compound Annual Growth Rate for investments, revenue, and portfolios. Understand your true investment growth rate.

📈 CAGR Calculator - Calculate Compound Annual Growth Rate Online Free

Calculate CAGR for investments, business revenue, portfolio returns. Measure true annualized growth rates accurately!

Accurate CAGR

Precise annualized returns

Flexible Periods

Any investment duration

Growth Visualization

Year-by-year breakdown

Reverse CAGR

Find required rate for goals

How to Calculate CAGR

Calculate compound annual growth rate in 3 simple steps.

1
Enter Initial Value

Input starting investment amount or beginning value (e.g., ₹1,00,000).

2
Enter Final Value

Input ending value after growth period (e.g., ₹2,50,000 after 5 years).

3
Enter Time Period

Specify number of years (or months converted to years) for calculation.

CAGR Formula:
CAGR = (Final Value / Initial Value)(1 / Number of Years) - 1

Example: Initial ₹1,00,000 → Final ₹2,50,000 in 5 years
CAGR = (2,50,000/1,00,000)(1/5) - 1 = 20.11%

CAGR Calculator Use Cases

Investment Analysis
  • Compare mutual fund performance over 3-5-10 years
  • Measure stock portfolio annualized returns
  • Evaluate real estate appreciation rates
  • Compare FD vs equity vs gold returns fairly
Business Metrics
  • Calculate revenue growth rate year-over-year
  • Measure profit CAGR for investors
  • Analyze customer base expansion
  • Track market share growth trends
Financial Planning
  • Determine required CAGR to reach retirement goal
  • Plan education corpus accumulation rate
  • Set realistic investment return expectations
  • Compare inflation-adjusted returns
Economic Research
  • Analyze GDP growth rates over decades
  • Study population growth trends
  • Measure industry sector expansion
  • Compare country performance metrics

Frequently Asked Questions

CAGR smooths volatile returns into comparable annual rate:

  • Problem: Investments don't grow evenly (Year 1: +20%, Year 2: -10%, Year 3: +30%)
  • Solution: CAGR provides single "average" annual rate that describes overall growth
  • Benefit: Enables apples-to-apples comparison between different investments
  • Example: Fund A (volatile): 15% CAGR vs Fund B (steady): 12% CAGR → Fund A performed better despite volatility

Yes! CAGR accounts for compounding:

Example: Investment grows from ₹100 to ₹400 in 4 years
  • Simple Average: Total gain 300% ÷ 4 years = 75%/year ❌ (misleading!)
  • CAGR: (400/100)(1/4) - 1 = 41.4% ✅ (accurate!)
  • Reality: ₹100 × 1.414⁴ = ₹400 (compounding works!)

Benefits

Investment Insights
  • True Performance: See actual annualized returns, not marketing hype
  • Fair Comparison: Compare investments with different time periods
  • Goal Setting: Determine required CAGR to achieve financial targets
  • Reality Check: Understand if past performance justifies future expectations
Tool Features
  • Instant Calculation: Get CAGR immediately after entering values
  • Detailed Breakdown: Year-by-year growth schedule visualization
  • Reverse Calculation: Find required rate for target amount
  • Export Results: Download CAGR analysis as PDF report

Calculate CAGR Now!

Measure investment performance accurately—free forever!