CAGR Calculator

Measure the annual growth rate of your investments over a specific period.

CAGR Calculator

Measure the annual growth rate of your investments over time

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Year
1 yr40 Yr

How to use the CAGR Calculator

CAGR (Compound Annual Growth Rate) is the most reliable way to measure the performance of an investment that fluctuates in value over time. Unlike simple average returns, CAGR accounts for the effect of compounding.

To calculate your growth rate, enter the Initial Investment Value (what you started with) and the Final Investment Value (current value or sale price).

Finally, specify the Investment Duration in years. The calculator will immediately provide your CAGR, which is the "smoothed" annual rate at which your money grew. This makes it incredibly easy to compare a stock's performance against a mutual fund or a fixed deposit.

Formula Explained

The CAGR calculation uses a geometric average to determine a constant rate of return:

CAGR Formula
CAGR = [(FV / PV) 1/n] − 1
FV Final ValueThe current or ending value
PV Initial ValueThe starting investment
n TenureNumber of years
Absolute Return

"I made 50% profit in total."

CAGR (Annualized)

"My money grew by 8.4% every year."

Key Insight: CAGR is the best tool for comparing investments with different holding periods or highly volatile price paths.

FAQ

Frequently Asked Questions

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Compound Annual Growth Rate (CAGR) is the rate of return that would be required for an investment to grow from its initial balance to its final balance, assuming the profits were reinvested at the end of each period.