CAGR Calculator
Calculate the Compound Annual Growth Rate (CAGR) of an investment, business value, revenue, asset or other value between a beginning value and an ending value.
Enter Growth Details
Enter the beginning value, ending value and the number of years between them.
Growth Analysis
These additional measurements help compare the total change with the compounded annual growth rate.
Year-Wise CAGR Growth
This table shows the theoretical value for each year if the calculated CAGR had occurred smoothly at the same compounded rate every year.
| Period | Projected Value | Growth From Start | Growth % |
|---|
What is CAGR?
CAGR stands for Compound Annual Growth Rate. It represents the constant annual compounded rate that would take a beginning value to an ending value over a specified period.
CAGR Formula
To express the result as a percentage:
CAGR % = [(Ending Value ÷ Beginning Value)1 ÷ Years − 1] × 100
CAGR Example
Ending Value: ₹2,00,000
Time: 5 years
CAGR:
(₹2,00,000 ÷ ₹1,00,000)1/5 − 1
= 21/5 − 1
≈ 14.87%
This means that a constant compounded annual growth rate of approximately 14.87% would turn ₹1,00,000 into ₹2,00,000 over five years.
CAGR vs Total Return
Total return measures the overall percentage change between the beginning and ending values. CAGR adjusts that growth for the length of the period and expresses it as a compounded annual rate.
(Ending Value − Beginning Value) ÷ Beginning Value × 100
For example, growing from ₹1,00,000 to ₹2,00,000 represents 100% total growth. If that growth occurred over five years, the CAGR is approximately 14.87%, not 20%.
Can CAGR Be Negative?
Yes. If the ending value is lower than the beginning value, CAGR will be negative. A negative CAGR represents an annualized compounded decline over the selected period.
What Does CAGR Tell You?
CAGR can make it easier to compare investments, revenue, business growth or other values over different periods. However, it smooths the entire period into one annual rate and does not show year-to-year volatility.
CAGR vs Average Annual Return
CAGR is not the same as simply dividing total percentage growth by the number of years. CAGR includes compounding, which makes it more appropriate when describing growth from one beginning value to one ending value.
Disclaimer: This CAGR Calculator is intended for educational and general planning purposes only. CAGR represents a smoothed compounded annual growth rate and does not indicate actual year-by-year performance. It does not account for intermediate cash flows, additional investments, withdrawals, taxes, fees, inflation or investment risk.