CAGR Calculator
Find the compound annual growth rate of your investment over a given period.
How does this CAGR calculator work?
Enter the starting value, ending value, and time period to calculate the compound annual growth rate of your investment.
Formula
CAGR = (End / Start)1/n - 1 Where:
- Start = Initial investment value
- End = Final investment value
- n = Number of years
CAGR smooths out the growth rate as if it grew at a steady rate each year, ignoring short-term volatility.
Why it matters
- Compare two investments held for different lengths of time
- Convert total return into a per-year rate
- Check fund performance over 3, 5, or 10 years
- Rough check for goal planning
Note: CAGR is a smoothed rate and does not reflect year-to-year volatility. Not investment advice.
CAGR Calculator: guide and FAQ
What is it?
CAGR is the steady yearly rate that links a starting value to an ending value over a period, as if growth were even each year. It is handy for comparing funds or portfolios held for different lengths of time.
How to use this calculator
- Enter starting value Enter the value at the start of the period.
- Enter ending value Enter the value at the end of the same period.
- Set period in years Use whole years or a decimal (e.g. 2.5 for two and a half years).
- Read CAGR and growth chart CAGR is one annual number. The chart shows a smooth path at that rate.
Worked example
₹1 lakh growing to ₹2 lakh in 5 years is about 14.9% CAGR in this model, not 20% simple average per year.
Practical tips
- Compare CAGR over the same number of years when looking at two funds.
- Two funds with the same CAGR can still have very different ups and downs.
Frequently asked questions
CAGR vs absolute return?
Absolute return is the total percentage change. CAGR converts that into a per-year figure so you can compare different time spans.
Can CAGR be negative?
Yes, if the ending value is below the starting value.
Does CAGR include dividends?
Only if dividends are reinvested and included in the ending value you enter.