Advanced CAGR Calculator

Calculate the Compound Annual Growth Rate of your investments

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$0 $0 $1,000,000
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$0 $0 $1,000,000
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Your CAGR Result

0.00%

Your investment grew from $0 to $0 over 0 years

Year Starting Value Ending Value Annual Growth Growth %

About CAGR

Compound Annual Growth Rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer than one year.

CAGR Formula:
CAGR = (Final Value / Initial Value)(1 / Number of Years) - 1
Why use CAGR?
  • It provides a smoothed annual rate of growth
  • Eliminates the effect of volatility and periodic returns
  • Allows for easy comparison between different investments
Creator Created by : Narendra
Creator
Narendra Kumar
  • Role:Engineer
  • Expertise:RF Planning & Optimization, Geospatial Engineering, Wireless Network Design, GIS Analysis, Python Automation, and GitHub Enthusiast.
Last Updated: 28-09-2025

CAGR Calculator – The Smart Way to Measure Growth

When it comes to tracking investments, mutual funds, or business performance, the CAGR calculator (Compound Annual Growth Rate calculator) is one of the most powerful tools. Unlike simple averages, CAGR provides the annualized growth rate of your money, assuming steady growth throughout the investment period.

Whether you’re comparing stock market returns, analyzing mutual fund performance, or planning your business growth, a compound growth rate calculator simplifies the process with accurate results.

What is CAGR?

CAGR stands for Compound Annual Growth Rate, and it measures how an investment grows consistently over time.

For example, say you invested $50,000 in a stock in 2015. By 2020, it grew to $1,00,000. The CAGR tells you the annual growth rate—not just the overall gain—making it easier to compare with other investments.

This is why investors, analysts, and businesses often rely on a CAGR growth rate calculator to evaluate performance.

CAGR Formula and How to Calculate

The CAGR formula is:

CAGR = (FV/PV)1/n - 1

Where:
  • FV = Final Value of investment
  • PV = Initial Value of investment
  • n = Number of years

Practical Examples

Example 1 – Mutual Fund Investment

  • Initial Value (PV): ₹1,00,000
  • Final Value (FV): ₹2,50,000
  • Duration: 6 years
Calculation:

CAGR = (2,50,000/1,00,000)1/6 - 1 = 16.3%

Your mutual fund delivered a 16.3% compound annual growth rate.

Example 2 – Business Revenue Growth

  • Revenue in 2018: ₹10 crore
  • Revenue in 2023: ₹25 crore
  • Duration: 5 years
Calculation:

CAGR = (25/10)1/5 - 1 = 20.1%

This means the business grew at an annual compound growth rate of 20.1%.

CAGR vs Other Growth Metrics

CAGR is powerful, but how does it compare with other metrics?

  • ROI (Return on Investment): Simple percentage gain, but doesn’t reflect time.

  • IRR (Internal Rate of Return): More complex, accounts for cash flows, often used in project evaluation.

  • XIRR (Extended IRR): Similar to IRR, but works with irregular investment intervals (popular for SIP investors).

If you’re only tracking start-to-end growth, the cumulative annual growth rate calculator or cumulative growth calculator is the most effective tool.

Why Use a CAGR Calculator?

Using a CAGR rate calculator saves time and avoids errors. Here are some advantages:

  • Investment Analysis: Compare mutual funds, stocks, real estate, and gold returns.

  • Business Forecasting: Companies use the compound annual rate calculator to track revenue and profit growth.

  • Retirement Planning: Understand how fast your wealth is compounding.

  • Educational Use: Students and finance professionals use it to understand growth projections.

A dedicated cagrcalculator gives results in seconds with accuracy.

CAGR in Real-Life Scenarios

1. Mutual Funds & SIPs

Investors often use a calculator for CAGR to check whether their mutual fund SIPs are performing well compared to benchmarks like Nifty or Sensex.

2. Stock Market Growth

If a stock grew from ₹200 to ₹1,000 in 10 years, CAGR shows whether it beat inflation and other asset classes.

3. Startups & Business Valuation

Entrepreneurs and VCs rely on the cumulative annual growth rate calculator to measure revenue expansion.

4. Real Estate Investments

Property value appreciation is best evaluated with the compound annual growth calculator instead of raw price increase.

Step-by-Step: How to Calculate CAGR

  1. Identify your Initial Investment (PV)
    The starting value of your investment
  2. Check the Final Value (FV) after the chosen time
    The ending value of your investment
  3. Note the number of years (n)
    The investment period in years
  4. Apply the CAGR formula or use a CAGR calculation Excel sheet
    Use the formula: CAGR = (FV/PV)1/n - 1
  5. Or simply enter values in an online CAGR calculator for quick results
    Use online tools for faster calculation
👉 Pro Tip

If you are an Excel user, try the CAGR formula Excel function to analyze multiple investments at once.

FAQ on CAGR Calculator

Q1: What is CAGR in simple words?

CAGR means the average annual growth rate of an investment over a period of years.

Q2: How do I calculate CAGR in Excel?

You can use the formula: = ((Final Value / Initial Value) ^ (1/Years)) - 1. This is the standard CAGR calculation Excel method.

Q3: Is CAGR always accurate?

CAGR assumes smooth growth, so it doesn’t show yearly fluctuations. But for long-term comparisons, it’s one of the best metrics.

Q4: What is the difference between CAGR and annualized return?

They are similar, but CAGR specifically shows compound growth, while annualized returns may vary depending on method.

Q5: Can I use CAGR for negative returns?

Yes, if the final value is lower than the initial, the CAGR will be negative, showing an annual decline.