CAGR Calculator
Calculate Compound Annual Growth Rate (CAGR) to measure the average annual growth of an investment over a specified period.
Use our free online cagr calculator to get accurate results instantly. The calculator is designed to be fast, easy to use, mobile-friendly, and suitable for everyday calculations.
CAGR Calculator
Calculate Compound Annual Growth Rate (CAGR), absolute returns, and profit from your investment.
How the CAGR Calculator Works
Step 1
Enter Beginning Value
Provide the initial investment amount.
Step 2
Enter Ending Value
Enter the final investment value.
Step 3
Enter Investment Period
Specify the number of years the investment was held.
Step 4
View CAGR Results
See CAGR, absolute return, and profit instantly.
CAGR Formula
CAGR = ((Ending Value ÷ Beginning Value)^(1 ÷ Years) − 1) × 100
Compound Annual Growth Rate (CAGR) represents the average annual growth rate of an investment over a specific period, assuming profits are reinvested each year.
Example Calculation
Input: Beginning Value: ₹100,000, Ending Value: ₹200,000, Years: 5
Output: CAGR = 14.87%, Profit = ₹100,000, Absolute Return = 100%
Common Uses
- • Stock investment analysis
- • Mutual fund performance evaluation
- • Business revenue growth analysis
- • Portfolio performance tracking
- • Financial planning
Frequently Asked Questions
What is CAGR?
CAGR (Compound Annual Growth Rate) measures the average annual growth rate of an investment over a period of time.
Why is CAGR important?
CAGR helps compare investment performance across different assets by standardizing growth into an annual rate.
How is CAGR different from absolute return?
Absolute return measures total growth, while CAGR shows the annualized growth rate over multiple years.
Can CAGR be negative?
Yes. If the ending value is lower than the beginning value, CAGR will be negative.
Is CAGR suitable for mutual funds and stocks?
Yes. CAGR is widely used to evaluate long-term investment performance in stocks, mutual funds, ETFs, and businesses.
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