CAGR Calculator
Find the compound annual growth rate between two values.
₹1,00,000 growing to ₹2,50,000 over 5 years equals a steady 20.11% per year compounded.
Results are estimates for information only, not financial advice. See how we build and verify our calculators.
CAGR (compound annual growth rate) converts any growth between two points in time into a steady per-year rate — the cleanest way to compare investments held for different durations.
How to use the CAGR Calculator
- Enter the initial value of the investment.
- Enter the final value and the years held.
- Read the CAGR and the absolute return.
Frequently asked questions
What is the CAGR formula?
CAGR = (final ÷ initial)^(1 ÷ years) − 1. Growing ₹1,00,000 to ₹2,50,000 over 5 years is a CAGR of about 20.1% per year.
Why use CAGR instead of absolute return?
A 150% absolute return sounds great until you learn it took 15 years (≈6.3% CAGR). CAGR normalises for time, letting you compare investments fairly.
Can CAGR be negative?
Yes — if the final value is below the initial value, CAGR is negative, representing the steady annual rate of loss.