₹1,00,000 growing to ₹2,00,000 in 5 years
Inputs
- initialValue
- 100000
- finalValue
- 200000
- period
- 5
Result
CAGR = approximately 14.87% per year.
Finance
CAGR Calculator
Calculate the Compound Annual Growth Rate of an investment over a specific period.
CAGR Calculator calculator
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CAGR Calculator
Enter the values below to calculate your result.
₹
₹
years
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Your result will appear here
Enter the required values and click Calculate to see your result.
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How does the cagr calculator work?
Enter the initial value of the investment, its final value, and the investment period in years. The calculator determines the annualized compound growth rate required for the initial value to reach the final value over the selected period.
Formula
CAGR = (Final Value ÷ Initial Value)^(1 ÷ Investment Period) − 1Examples
₹5,00,000 growing to ₹10,00,000 in 10 years
Inputs
- initialValue
- 500000
- finalValue
- 1000000
- period
- 10
Result
CAGR = approximately 7.18% per year.
₹2,00,000 growing to ₹3,00,000 in 5 years
Inputs
- initialValue
- 200000
- finalValue
- 300000
- period
- 5
Result
CAGR = approximately 8.45% per year.
About this calculator
A CAGR calculator helps you calculate the Compound Annual Growth Rate of an investment over a specific period.
CAGR represents the annualized rate at which an investment would need to grow, assuming a consistent compounded rate, to increase from its initial value to its final value.
The CAGR formula uses the initial investment value, final investment value, and investment period. It can be useful when comparing the growth of investments, businesses, revenues, or other financial values over time.
CAGR provides a smoothed annual growth rate and does not show the actual performance for each individual year. An investment may experience significant gains and losses during the period while still having the same overall CAGR.
The basic CAGR calculation does not account separately for additional investments, withdrawals, dividends, or other cash flows during the investment period.
Frequently asked questions
What is CAGR?
CAGR stands for Compound Annual Growth Rate. It represents the annualized growth rate of an investment over a specific period, assuming the growth is compounded consistently.
How is CAGR calculated?
CAGR is calculated by dividing the final value by the initial value, raising the result to the power of one divided by the investment period, and subtracting one.
What is the CAGR formula?
The formula is CAGR = (Final Value ÷ Initial Value)^(1 ÷ Years) − 1. The result is multiplied by 100 to express the CAGR as a percentage.
What does a negative CAGR mean?
A negative CAGR means the final value is lower than the initial value over the selected period.
What is a good CAGR?
There is no single CAGR that is considered good for every investment. It depends on the asset, investment period, risk, market conditions, and available alternatives.
Does CAGR show year-by-year investment returns?
No. CAGR is a smoothed annual growth rate. It does not show the actual returns or losses that occurred in individual years.
Does CAGR account for additional investments?
No. The basic CAGR calculation uses only the initial value, final value, and investment period. Additional contributions, withdrawals, and other cash flows are not separately accounted for.
Can CAGR be used to compare investments?
Yes. CAGR can be useful for comparing the annualized growth of investments over the same or comparable periods, although risk and cash flows should also be considered.
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