CAGR Calculator - Compound Annual Growth Rate
Calculate CAGR (Compound Annual Growth Rate) for your investments. Measure the true annualized return of any investment over time.
Calculate CAGR
Initial investment value
Current/final value
Investment duration
CAGR
24.57%
Initial Investment
₹1,00,000
Final Value
₹3,00,000
Formula & Explanation
CAGR = (Ending Value / Beginning Value)^(1/n) - 1Where Ending Value = Current/final investment value, Beginning Value = Initial investment, n = Number of years. CAGR represents the constant rate at which an investment would have grown.
Calculation Examples
5-Year Growth
₹1L grew to ₹3L in 5 years
CAGR: 24.57%
Benefits
- Measure true returns
- Compare investments
- Smooth out volatility
- Benchmark performance
Use Cases
- Investment analysis
- Fund comparison
- Portfolio review
- Business growth measurement
About CAGR Calculator
Our CAGR Calculator helps you measure the true annualized growth rate of your investments. CAGR smooths out volatility and gives you a single growth rate that represents the geometric progression of your investment value over time.
Frequently Asked Questions
CAGR (Compound Annual Growth Rate) is the rate of return that would be required for an investment to grow from its beginning balance to its ending balance, assuming profits were reinvested.
No. CAGR accounts for compounding and gives the geometric mean return. Average return is the arithmetic mean and can be misleading for volatile investments.