CAGR Calculator
Calculate the Compound Annual Growth Rate between two values.
Assumptions used in this calculation
- No interim cash flows: CAGR assumes a single initial investment and a single final value, it ignores any additional contributions or withdrawals made during the period.
- Smoothed rate: The result is a hypothetical constant annual growth rate, actual year-to-year returns may have been more volatile even though they compound to the same final value.
About this calculator
Investments rarely grow in a straight line, a stock or fund might jump 30% one year and fall 10% the next, which makes a simple average of yearly returns misleading because it ignores compounding and can overstate real performance. CAGR (Compound Annual Growth Rate) solves this by finding the single steady annual rate that would take your initial value to your final value over the actual number of years elapsed, using CAGR = (Final ÷ Initial)^(1/years) − 1. Enter the starting value, ending value and the number of years between them, and this calculator returns that smoothed rate instantly, without you needing to solve the exponent by hand. It's the standard way to compare two investments, funds or business metrics that grew over different time periods or with different volatility, since it reduces each one to a single, directly comparable number.
Worked example
₹1,00,000 grew to ₹1,80,000 over 5 years
Result: CAGR ≈ 12.47%
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