CAGR Calculator
Calculate the Compound Annual Growth Rate (CAGR) of any investment. Enter starting value, ending value, and time period to find the annualized return.
COMPOUND ANNUAL GROWTH RATE
37.97%
ABSOLUTE RETURN
โน4.00 L
TOTAL RETURN %
400.00%
GROWTH MULTIPLE
5.00x
| Year | Value | Growth |
|---|---|---|
| 0 | โน1.00 L | โ |
| 1 | โน1.38 L | +โน37,972.966 |
| 2 | โน1.90 L | +โน52,392.428 |
| 3 | โน2.63 L | +โน72,287.387 |
| 4 | โน3.62 L | +โน99,737.051 |
| 5 | โน5.00 L | +โน1.38 L |
What is CAGR?
CAGR (Compound Annual Growth Rate) is the average annual rate at which an investment grows over a specified time period, assuming profits are reinvested. Unlike simple average returns, CAGR smooths out volatility and gives you the true annualized growth rate.
CAGR Formula
CAGR = (Ending Value / Starting Value)^(1/n) โ 1
Where n is the number of years. For example, an investment that grows from โน1,00,000 to โน5,00,000 in 5 years has a CAGR of (5,00,000/1,00,000)^(1/5) โ 1 = 37.97% per year.
Where CAGR is Used
- Mutual Fund Returns: Comparing scheme performance over 3, 5, 10 years
- Stock Analysis: Evaluating revenue and earnings growth
- Portfolio Tracking: Measuring overall portfolio performance
- Business Valuation: Forecasting future growth based on historical data
Where:
- CAGR = Compound Annual Growth Rate
- Ending Value = Final value of the investment
- Starting Value = Initial investment amount
- n = Number of years
๐ Worked Example
โน1,00,000 grew to โน5,00,000 in 5 years
CAGR = (5,00,000 / 1,00,000)^(1/5) โ 1= 37.97% per year
Total absolute return
(5,00,000 โ 1,00,000) / 1,00,000 ร 100= 400% total, but CAGR is 37.97%