CAGR Calculator - Compound Annual Growth Rate

Calculate CAGR (Compound Annual Growth Rate) for your investments. Measure the true annualized return of any investment over time.

Calculate CAGR

1,0001,00,00,000

Initial investment value

1,00010,00,00,000

Current/final value

years
1years30years

Investment duration

CAGR

24.57%

Initial Investment

₹1,00,000

Final Value

₹3,00,000

Formula & Explanation

CAGR = (Ending Value / Beginning Value)^(1/n) - 1

Where Ending Value = Current/final investment value, Beginning Value = Initial investment, n = Number of years. CAGR represents the constant rate at which an investment would have grown.

Calculation Examples

5-Year Growth

₹1L grew to ₹3L in 5 years

CAGR: 24.57%

Benefits

  • Measure true returns
  • Compare investments
  • Smooth out volatility
  • Benchmark performance

Use Cases

  • Investment analysis
  • Fund comparison
  • Portfolio review
  • Business growth measurement

About CAGR Calculator

Our CAGR Calculator helps you measure the true annualized growth rate of your investments. CAGR smooths out volatility and gives you a single growth rate that represents the geometric progression of your investment value over time.

Frequently Asked Questions

CAGR (Compound Annual Growth Rate) is the rate of return that would be required for an investment to grow from its beginning balance to its ending balance, assuming profits were reinvested.

No. CAGR accounts for compounding and gives the geometric mean return. Average return is the arithmetic mean and can be misleading for volatile investments.