Compound Annual Growth Rate (CAGR) Calculator
Measure the annualized growth rate of an investment from its beginning and ending value.
What is Compound Annual Growth Rate (CAGR) Calculator?
A CAGR calculator estimates the annual growth rate of an investment over time by smoothing returns across the full investment period.
Financial calculators are useful because they turn assumptions into numbers you can compare. Instead of guessing, you can test different values for amount, time horizon, expected rate, and goal requirements to understand how the final result changes before you commit.
How this calculator works
CAGR is calculated as (Ending Value / Beginning Value)^(1 / Years) − 1. It helps compare growth across different time horizons and investment products.
Worked example
If an investment rises from ₹1 lakh to ₹2 lakh in 5 years, the CAGR is roughly 14.87%, which shows the annualized growth rate rather than the simple total return.
Most common mistakes people make
- Confusing CAGR with actual annual returns, which can vary year to year.
- Ignoring volatility and drawdowns while comparing investment performance.
- Using CAGR for returns that include large one-time deposits or withdrawals.
- Assuming CAGR is guaranteed in future periods.
- Comparing different asset classes without considering risk.
Frequently asked questions
Compound Annual Growth Rate (CAGR) Calculator helps you estimate the likely result of a financial decision using standard formulas and the assumptions you enter for amount, rate, duration, and frequency.
The calculator applies the relevant financial formula to your inputs and shows a real-time estimate so you can compare different scenarios before making a decision.
It gives a practical estimate based on standard formulas and assumptions, but actual outcomes can vary with market performance, policy changes, fees, taxes, and changing personal circumstances.
Yes. These calculators are designed for quick planning and comparison, especially when you want to estimate future values, repayments, or coverage needs before locking in a financial choice.
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Disclaimer
This CAGR calculator is intended for planning and comparison only. It does not predict future returns or guarantee performance of any investment.