CAGR Calculator
Find the compound annual growth rate, the single yearly rate that turned your starting value into the ending value.
What is CAGR?
CAGR is the steady yearly rate that would take an investment from its start value to its end value over a period, as if it grew the same amount every year. It smooths out the ups and downs, which makes it the fairest way to compare two investments.
How it's calculated
The calculator uses CAGR = (end ÷ begin)^(1 ÷ years) − 1, shown as a percentage. Unlike a simple average, it accounts for compounding, so it reflects the real yearly growth.
An example
Grow ₹1 lakh into ₹2 lakh in 6 years and the CAGR is about 12.25% a year, the rate that doubles your money in that time.
Questions people ask
CAGR or absolute return?
Absolute return tells you the total gain; CAGR tells you the yearly rate, which is what lets you compare investments held for different lengths of time.
Does CAGR show risk?
No. Two investments can share a CAGR while one was far bumpier along the way. CAGR is about the destination, not the ride.
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