Free investment growth calculator

CAGR Calculator

Find the annualized growth rate between a starting value and an ending value. See the result summary, a year-by-year growth chart, and a table you can download as a PDF report.

Enter your investment values

Use values from the beginning and end of one period. CAGR is designed for a single starting amount without added deposits or withdrawals.

Value at the start of the period.

Value at the end of the period. It may be lower than the initial value.

Enter a period greater than zero. Decimal years are allowed.

This changes the display symbol and formatting only.

Annualized growth rate
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Enter your values to see the annualized result.

Initial value—
Final value—
Total growth—
Total return—

Illustrated value by year

Year-by-year table

YearStarting valueEnding valueAnnual growthGrowth rate

Yearly values are a smooth illustration calculated from CAGR. Actual returns can vary each year.

CAGR smooths the start-to-end result into a constant annual rate. It does not show the actual path, volatility, fees, taxes, or inflation. For regular contributions or withdrawals, a cash-flow return measure such as XIRR is usually more suitable.

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Narendra Kumar
Created by
Narendra Kumar
Reema Singh
Verified by
Reema Singh
Last Updated: 30-Sep-20264 min read

What is CAGR?

CAGR means Compound Annual Growth Rate. It describes the steady yearly rate that would take an investment from its initial value to its final value over a chosen period, assuming the growth compounds each year.

For example, if an investment grows from $10,000 to $15,000 over five years, its CAGR is about 8.45% per year. This is a smoothed rate for comparing start and end values; it does not mean the investment earned exactly 8.45% in every year.

CAGR formula

CAGR=(Final Value ÷ Initial Value)1 ÷ Years− 1

Multiply the result by 100 to express CAGR as a percentage. The calculator uses the same formula and formats the displayed result to two decimal places.

How to use this CAGR calculator

  1. Enter the investment's initial value.
  2. Enter its final value after the period. A lower final value produces a negative CAGR.
  3. Enter the elapsed period in years. You can use a decimal for a partial year.
  4. Select a display currency, then choose Calculate CAGR.
  5. Review the annualized rate, total growth, chart, and yearly table. Choose Download PDF reportto save a copy.

Understanding the result

Annualized growth rateis the compounded yearly rate between the two values. Total growthis the difference between final and initial value. Total returnis that difference expressed as a percentage of the initial value.

The chart and yearly table apply the CAGR evenly across the period so the start-to-end path is easy to understand. They are illustrative, not a record of actual annual performance.

When is CAGR useful?

CAGR is useful for comparing two investments, business revenue, property values, or portfolio balances measured at the start and end of a period. It puts different time periods on an annualized basis.

Limits of CAGR

  • It hides changes and volatility between the first and last values.
  • It does not include fees, taxes, or inflation unless you adjust the input values yourself.
  • It assumes one initial amount and does not account for cash added or withdrawn during the period.

For investments with regular or irregular cash flows, use an internal rate of return calculation such as XIRR, which considers when each cash flow occurs.

FAQ on CAGR

1. What is CAGR in simple words?

CAGR (Compound Annual Growth Rate) is the annualized compounded growth rate of an investment between its starting and ending values over a specific period.

2. How is CAGR calculated?

CAGR is calculated using the initial value, final value, and investment period. The formula is: (Final Value / Initial Value)1 / Years− 1.

3. Is CAGR the same as annual return?

No. CAGR represents a compounded annualized growth rate between two values. It does not show the actual return achieved in each individual year.

4. Can CAGR be negative?

Yes. If the final value of an investment is lower than the initial value, the calculated CAGR will be negative.

5. Can CAGR be used for SIP investments?

CAGR is generally suitable for a single initial investment. For SIPs or investments with multiple cash flows, XIRR is usually more appropriate because it considers the timing of individual cash flows.

6. What is the difference between CAGR and absolute return?

Absolute return measures the total percentage gain or loss, while CAGR converts the growth between the starting and ending values into an annual compounded growth rate.