CAGR Calculator – Compound Annual Growth Rate
Find the CAGR between two values, or project a future value from a CAGR. Calculated instantly in your browser.
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CAGR
20.11%
- Absolute return
- 150%
- Total gain
- ₹1,50,000
- Growth multiple
- 2.50
- CAGR of 20.11% p.a. over 5 years.
Year-by-year value at constant CAGR
| Year | Value |
|---|---|
| 1 | ₹1,20,112 |
| 2 | ₹1,44,270 |
| 3 | ₹1,73,286 |
| 4 | ₹2,08,138 |
| 5 | ₹2,50,000 |
How it's calculated
CAGR = (Final ÷ Initial)^(1 ÷ n) − 1
Future value = Initial × (1 + CAGR)ⁿ
CAGR is the geometric mean annual growth rate. It assumes steady growth between the start and end, even if the actual path was uneven.
Assumptions
- No interim cash flows (deposits or withdrawals).
How to use this calculator
- Choose mode. Pick 'Find CAGR' or 'Find future value'.
- Enter values. Enter the initial value and the final value (or CAGR).
- Enter duration. Set the number of years.
- Read result. View CAGR, absolute return and the growth curve.
Frequently asked questions
What is CAGR?
Compound Annual Growth Rate is the constant yearly rate at which an investment would have had to grow to get from its starting value to its ending value over a period, with returns compounding each year.
What is the CAGR formula?
CAGR = (Ending value ÷ Beginning value)^(1 ÷ years) − 1. To project forward: Future value = Beginning value × (1 + CAGR)^years.
CAGR vs absolute return: what's the difference?
Absolute return is the total percentage gain regardless of time. CAGR annualises it, letting you compare a 3-year investment with a 10-year one fairly.
CAGR vs XIRR?
CAGR suits a single investment with one start and one end value. XIRR handles multiple cash flows at different dates, such as a SIP. Use SIP-based tools or XIRR for periodic investing.
What are the limits of CAGR?
It smooths out volatility, so it hides the ups and downs along the way, and it ignores interim cash flows. Two investments with the same CAGR may have very different risk.
Can CAGR be negative?
Yes. If the ending value is below the starting value the CAGR is negative, indicating an annualised loss.
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Results from FinanceChacha are estimates for planning and education, not financial, tax or legal advice.