CAGR calculator: compound annual growth rate
CAGR is the steady yearly rate that would turn your starting value into your ending value. It makes investments with different time periods comparable.
How to use this calculator
- Enter the value you started with.
- Enter the value you ended with.
- Enter the number of years, which can be a fraction.
- Read the CAGR and the total gain.
Worked examples
Example 1
₹1,00,000 grew to ₹2,50,000 in 6 years.
You enter
| Starting value | ₹1,00,000 |
|---|---|
| Ending value | ₹2,50,000 |
| Years | 6 |
You get
| CAGR (per year) | 16.5% |
|---|---|
| Total gain | ₹1,50,000 |
| Total return | 150% |
| Same rate for 5 more years would give | ₹5,36,484 |
Example 2
₹5,00,000 grew to ₹6,20,000 in 2.5 years.
You enter
| Starting value | ₹5,00,000 |
|---|---|
| Ending value | ₹6,20,000 |
| Years | 2.5 |
You get
| CAGR (per year) | 8.99% |
|---|---|
| Total gain | ₹1,20,000 |
| Total return | 24% |
| Same rate for 5 more years would give | ₹9,53,312 |
How it works
CAGR smooths the ups and downs into one number. The path was bumpier, and two investments with the same CAGR can feel very different.
It ignores money added or withdrawn in between, so for a SIP use an XIRR-type measure instead.
Formula
CAGR = (ending value / starting value)^(1 / years) - 1.
Common questions
Can CAGR be negative?
Yes, if the ending value is below the start.
Is CAGR a forecast?
No, it describes the past.
What about dividends?
Include them in the ending value if you want total return.
Learn more
Read the lesson Compounding and the time value of money on pusaram.com for the ideas behind this calculator.
Calculators give estimates for learning and planning. They are not financial, tax, legal or medical advice, and results depend entirely on the numbers you enter. Check rates, limits and rules with an official source or a qualified professional before acting.