toolcubbyCAGR Calculator
Find the compound annual growth rate of an investment from its start and end values.
How to use
- Enter the starting (initial) value of the investment.
- Enter the final value it reached.
- Enter the number of years over which it grew.
- Click Calculate CAGR to see the annual growth rate and total growth.
How CAGR is calculated
CAGR = (final ÷ initial)^(1 ÷ years) − 1
The result tells you the constant annual rate that would turn the initial value into the final value over the given number of years, accounting for compounding.
FAQ
What is CAGR?
It is the annualized, compound rate of growth that smooths the year-to-year swings into a single percentage.
How is it calculated?
CAGR = (final ÷ initial)^(1 ÷ years) − 1. A ₹1,000 value growing to ₹2,000 in 5 years gives about 14.87%.
Is CAGR the same as average return?
No. CAGR reflects compounding, while a simple average ignores it; CAGR is usually the more useful single figure.