Investments
CAGR Calculator
Find the smoothed annual growth rate between two values. Move the sliders or type exact numbers — results update instantly.
Formula checked by Naman, Fistotex founderLast updated Free · No sign-up · Runs in your browser
Your inputs
CAGR
20.11%
- Absolute return
- 150%
Figures are estimates based on the inputs and assumptions shown. Actual outcomes will differ. This is not financial advice.
Guide
CAGR Calculator: what it does and when to use it
CAGR is the constant yearly growth rate that would take an investment from its starting value to its ending value over a given number of years. It smooths out the ups and downs to give one comparable number.
Use CAGR to compare a stock, fund, property or business metric such as revenue across different time periods on equal terms.
How to use it: set each input with the slider or type an exact figure. Results, the chart and the shareable link update instantly.
- Initial value
- ₹1,00,000
- Final value
- ₹2,50,000
- Number of years
- 5 years
- Absolute return
- 150%
- CAGR
- 20.11%
Method
How this calculation works
The exact formula and assumptions behind the numbers above.
Formula
CAGR = (Final ÷ Initial)^(1 ÷ n) − 1
n = number of years. The result is the constant annual rate that would take you from the initial to the final value.
Assumptions
- CAGR smooths out volatility into a single comparable number.
- It does not reflect the actual path the investment took.
Questions
Frequently asked questions
CAGR vs absolute return?
Absolute return is the total percentage gain. CAGR converts it into an equivalent per-year rate, which makes investments of different durations comparable.
CAGR vs XIRR?
CAGR assumes a single investment held for the whole period. XIRR handles multiple cash flows at different dates.
What is the CAGR formula?
CAGR = (Ending value ÷ Beginning value)^(1 ÷ years) − 1.
What is a good CAGR?
It depends on the asset and risk. Compare an investment's CAGR with inflation and with a relevant benchmark such as the Nifty 50 over the same years.
Disclaimer
This calculator is an educational tool. It provides estimates based on the inputs and assumptions shown, and does not constitute personalised financial, investment or tax advice. Actual returns, interest, taxes and fees will vary. Please consult a qualified professional before making financial decisions.