CAGR Calculator

Calculate the Compound Annual Growth Rate (CAGR) to understand the average annual growth of your investment.

Investment Details

₹ 1,00,000
₹ 2,00,000
5 Years

Calculated CAGR

0.00 %

Total Growth

₹ 0

Total Growth (%)

0.00 %

Year-wise Growth Breakdown

Year Starting Value Growth This Year Ending Value

Unlock Investment Growth: Your CAGR Calculator

Accurately measure the average annual growth rate of your investments over time.

Understanding Compound Annual Growth Rate (CAGR)

The Compound Annual Growth Rate (CAGR) is a crucial metric for evaluating the performance of an investment over a specified period. Unlike simple annual growth, CAGR smooths out volatile returns, providing a more accurate and consistent measure of an investment's average annual growth. It's particularly useful for comparing different investments or assessing the historical performance of a portfolio.

CAGR helps you understand the true rate at which your investment has grown, assuming profits were reinvested at the end of each year. This makes it an indispensable tool for long-term financial planning and analysis.

Why Our CAGR Calculator is Essential

Calculating CAGR manually can be complex, especially with varying investment periods and values. Our online CAGR calculator simplifies this process, providing instant and accurate results. It's designed for investors, analysts, and anyone looking to gain clear insights into their financial growth.

  • User-Friendly Interface
    Input your initial investment, ending investment, and the number of years with ease.
  • Instant Results
    Get your Compound Annual Growth Rate immediately, saving you time and effort.
  • Accuracy Guaranteed
    Rely on precise calculations for your financial analysis and decision-making.
  • Data Privacy
    All calculations are performed client-side in your browser; no data is sent to our servers.

Simple Steps to Calculate Your CAGR

Using our CAGR calculator is straightforward. Follow these steps to determine your investment's growth rate:

  1. Enter Initial Investment Value
    Input the starting value of your investment or portfolio.
  2. Enter Ending Investment Value
    Provide the final value of your investment after the growth period.
  3. Specify Number of Years
    Indicate the total duration of the investment in years.
  4. Click "Calculate CAGR"
    The calculator will instantly display the Compound Annual Growth Rate for your inputs.

Frequently Asked Questions About CAGR

CAGR represents the smoothed, annualized rate of return, assuming profits are reinvested. Average annual return is a simple arithmetic mean of annual returns, which can be misleading as it doesn't account for compounding effects or the order of returns. CAGR provides a more accurate picture of an investment's growth over time.

Yes, CAGR can be negative if the ending value of the investment is less than the initial investment value. A negative CAGR indicates that the investment has lost value on average over the specified period.

While you can calculate CAGR for short periods, it is generally more relevant and insightful for long-term investments (typically three years or more). For short-term analysis, other metrics like simple return or daily/monthly returns might be more appropriate.

No, the standard CAGR formula does not account for additional deposits or withdrawals made during the investment period. It assumes a single initial investment that grows to a final value over time with all returns reinvested. For portfolios with ongoing contributions or withdrawals, metrics like Money-Weighted Rate of Return (MWRR) or Time-Weighted Rate of Return (TWRR) might be more suitable.