CAGR Calculator

Calculate the compound annual growth rate of an investment.

Last updated: 8 Aug 2026

Quick answer

CAGR = (Final Value ÷ Initial Value)^(1 ÷ years) − 1. For example, an investment growing from ₹1,00,000 to ₹2,00,000 in 5 years has a CAGR of 14.87%. Enter your initial value, final value and period above to calculate instantly.

years

CAGR (Compound Annual Growth Rate) is the smoothed annual rate at which an investment grows from its starting to its ending value over a period. It lets you compare investments of different sizes and durations on a like-for-like basis.

How to calculate CAGR

  1. 1 Enter the initial (starting) value.
  2. 2 Enter the final (ending) value.
  3. 3 Enter the number of years.
  4. 4 We compute CAGR = (Final ÷ Initial)^(1/years) − 1.

Frequently asked questions

What is the CAGR formula?
CAGR = (Final Value ÷ Initial Value)^(1 ÷ number of years) − 1, expressed as a percentage.
How is CAGR different from absolute return?
Absolute return is the total percentage gain; CAGR annualises it, showing the equivalent steady yearly growth rate.
Is a higher CAGR always better?
Generally yes for growth, but consider risk and volatility too — a steadier investment may be preferable at a similar CAGR.

Related checkers