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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.

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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.

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