CAGR Calculator
The single annual rate that turns a starting value into an ending value.
Result
- Absolute return
- 100.00%
- Total gain
- ₹1,00,000
- Growth multiple
- 2.00x
| Period | Value | Gain to date |
|---|---|---|
| Year 1 | ₹1,14,870 | ₹14,870 |
| Year 2 | ₹1,31,951 | ₹31,951 |
| Year 3 | ₹1,51,572 | ₹51,572 |
| Year 4 | ₹1,74,110 | ₹74,110 |
| Year 5 | ₹2,00,000 | ₹1,00,000 |
CAGR smooths the whole period into one annual rate; the actual path was almost certainly bumpier. Past growth does not indicate future returns.
Estimated from the numbers you entered — not a projection of guaranteed returns.
About this calculator
CAGR converts total growth over several years into one annual rate, which makes investments of different lengths comparable. It says nothing about the path taken — a smooth 12% and a violent one produce the same CAGR. It also assumes a single entry and a single exit; for multiple dated transactions, XIRR is the right measure.
Formula
- CAGR = [ (Final value ÷ Initial value)^(1 ÷ n) − 1 ] × 100
- Absolute return = (Final − Initial) ÷ Initial × 100
Frequently asked questions
CAGR or absolute return?
Absolute return is the total change; CAGR spreads it per year so a 3-year and a 10-year result can be compared. Quote CAGR for periods longer than a year.
Why does the calculator need whole years?
CAGR is defined on an annual period. For part-years, or when money went in and out on several dates, use the XIRR calculator.
Can CAGR be negative?
Yes. If the final value is below the initial value, the compounded rate is negative.