Investment Growth & Performance
CAGR Calculator — Compound Annual Growth Rate (2026)
Calculate the Compound Annual Growth Rate of any investment instantly. Enter your beginning value, ending value, and investment period to see your annualized CAGR percentage.
CAGR Calculator
Enter your investment details to calculate the Compound Annual Growth Rate.
The value of the investment at the start of the period
The value of the investment at the end of the period
Number of years the investment was held
Results
CAGR
14.87%
Absolute Growth
100.00%
Total Gain
₹100,000
An investment that grew from ₹100,000 to ₹200,000 over 5 years produced a CAGR of 14.87% per year.
Now that you have your CAGR, here's what to do next:
What is CAGR?
CAGR (Compound Annual Growth Rate) is the average annual growth rate of an investment over a specified time period, assuming any gains are reinvested each year. Rather than showing the erratic year-to-year swings an investment actually experiences, CAGR smooths those fluctuations into a single, steady growth rate — as if the investment had grown at that exact pace every single year.
CAGR is one of the most widely used metrics in finance. Investors use it to compare mutual funds and stocks over different holding periods, business owners use it to track revenue or user growth year over year, and analysts use it to evaluate long-term performance of any asset that changes in value over time. Because it accounts for compounding, CAGR is far more accurate than a simple average of yearly returns.
Use the CAGR Calculator above to instantly find the annualized growth rate of any investment, or explore related tools like our ROI Calculator for total return without annualization.
CAGR Formula
The standard formula used to calculate Compound Annual Growth Rate.
CAGR (%) = [(Ending Value / Beginning Value) ^ (1 / Years) − 1] × 100
Worked Example
CAGR = [(2,00,000 / 1,00,000)^(1/5) − 1] × 100 = 14.87%
An investment that doubled over 5 years grew at an average compounded rate of 14.87% per year — even though the actual year-to-year growth was likely uneven.
How to Calculate CAGR
Follow these steps to calculate CAGR for any investment.
Identify the Beginning Value
Note the value of the investment at the very start of the period — the purchase price, initial deposit, or starting revenue figure.
Identify the Ending Value
Note the value at the end of the period — current market value, sale proceeds, or the most recent revenue figure.
Divide Ending Value by Beginning Value
This gives you the total growth multiple over the entire period — for example, 2.0 if the investment doubled.
Raise to the Power of 1/Years
Take that ratio to the power of 1 divided by the number of years held. This converts the total growth into an annualized growth factor.
Subtract 1 and Multiply by 100
Subtract 1 from the result and multiply by 100 to express CAGR as a percentage — the average annual growth rate.
Investment Examples
Real scenarios showing how CAGR is used to evaluate different types of investments.
Mutual Fund Investment
An investor puts ₹3,00,000 into an equity mutual fund. After 7 years, the investment is worth ₹6,90,000.
CAGR = [(6,90,000 / 3,00,000)^(1/7) − 1] × 100
CAGR ≈ 12.68%
Business Revenue Growth
A small business had annual revenue of ₹25,00,000 three years ago. This year, revenue reached ₹40,00,000.
CAGR = [(40,00,000 / 25,00,000)^(1/3) − 1] × 100
CAGR ≈ 16.96%
Stock Portfolio
A stock purchased for ₹1,50,000 four years ago is now worth ₹2,10,000.
CAGR = [(2,10,000 / 1,50,000)^(1/4) − 1] × 100
CAGR ≈ 8.78%
Declining Investment
An investment of ₹1,00,000 falls to ₹80,000 after 3 years — a real-world example of negative CAGR.
CAGR = [(80,000 / 1,00,000)^(1/3) − 1] × 100
CAGR ≈ −7.17%
CAGR vs ROI
Both metrics measure investment growth, but they answer different questions.
CAGR
Shows the average annual growth rate, assuming compounding. Best for comparing investments held over different time periods.
- Accounts for the length of the holding period
- Smooths out year-to-year volatility
- Ideal for comparing mutual funds, stocks, or business growth over multiple years
ROI
Shows the total return over the entire holding period as a single percentage, without annualizing.
- Simple and easy to calculate
- Doesn't account for how long the investment was held
- Best for short-term or single-period comparisons
Example: an investment that doubles in 3 years and one that doubles in 10 years both have an ROI of 100% — but very different CAGRs (26.0% vs 7.2%). Use our ROI Calculator alongside CAGR to get the full picture of an investment's performance.
Advantages and Limitations of CAGR
Advantages
- Provides a single, smoothed growth rate that's easy to compare across investments
- Accounts for compounding, unlike a simple average of yearly returns
- Widely used and understood across finance, investing, and business
- Useful for comparing investments held over different time periods
Limitations
- Hides year-to-year volatility — an investment could have had sharp ups and downs
- Assumes steady, uninterrupted compounding, which rarely happens in reality
- Doesn't account for additional contributions or withdrawals during the period
- Not a substitute for measuring risk — a high CAGR can still come with high volatility
Related Financial Tools
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Inflation Calculator
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ROI Calculator
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Compound Interest Calculator
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Estimate future savings growth from an initial deposit plus regular monthly contributions.
Lumpsum Calculator
Estimate the future value of a one-time investment and check its implied CAGR.
Frequently Asked Questions
Answers to common questions about calculating and interpreting CAGR.
Find your annualized growth rate in seconds
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