CAGR Calculator — Compound Annual Growth Rate
CAGR (Compound Annual Growth Rate) is the smoothed annual rate that would take an investment from its starting value to its ending value over a period. It's the standard way to compare returns across different investments and time frames.
Formula
CAGR = ((Ending value ÷ Beginning value) ^ (1 ÷ years) − 1) × 100.
Example
An investment that grows from ₹1,00,000 to ₹2,00,000 over 5 years has a CAGR of about 14.87% per year, even though the absolute return is 100%.
Frequently Asked Questions
What does CAGR tell you?
CAGR shows the constant yearly growth rate that connects your start and end values — useful for comparing investments over different periods.
Is CAGR the same as absolute return?
No. Absolute return is the total percentage gain over the whole period; CAGR annualises that gain into a per-year rate.
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