CAGR Calculator
Calculate Compound Annual Growth Rate from an investment's start and end value, or project a future value at an assumed CAGR. Free, no login, nothing stored.
Works for stocks, mutual funds, business revenue, or any value that has grown or shrunk over time.
What Is CAGR?
CAGR (Compound Annual Growth Rate) is the single, smoothed annual rate at which an investment would have grown if it had compounded steadily every year, rather than fluctuating up and down. It's one of the most widely used measures for comparing the performance of mutual funds, stocks, business revenue, or any value that changes over multiple years, because it strips away year-to-year volatility and reduces the entire growth story to one comparable number.
Free, No Login, No Data Stored
This calculator runs entirely in your browser. There is no sign-up, no account, and nothing you enter is saved, tracked, or sent anywhere. It's free to use as many times as you need.
How to Use This CAGR Calculator
- Choose Calculate CAGR if you know the start and end value of an investment and want to find its annual growth rate.
- Choose Project Future Value if you want to estimate what an investment could grow to at an assumed annual rate.
- Enter your Initial Investment, the Final Value (or expected growth rate), and the Time Period in years.
- Results update instantly - Absolute Growth, Total Growth %, Investment Multiple, and either your CAGR or Projected Future Value.
CAGR Formula
CAGR = (Final Value / Initial Value)^(1 / Years) - 1
Future Value = Initial Value x (1 + CAGR)^Years
Multiple = Final Value / Initial Value, for example a multiple of 2.5x means the investment grew two and a half times its original value.
CAGR vs Absolute Return vs XIRR
| Metric | What It Measures | Best Used For |
|---|---|---|
| Absolute Return | Total percentage gain over the entire period, with no adjustment for time | Quick snapshot of total profit, regardless of how long it took |
| CAGR | The smoothed, compounded annual growth rate over the period, assuming a single lump sum investment | Comparing investments held for different lengths of time on a like-for-like annual basis |
| XIRR | The annualised return accounting for multiple cash flows on different dates, such as SIPs or partial withdrawals | Investments with irregular or repeated contributions rather than a single lump sum |
CAGR assumes a single investment made at the start and a single value at the end. If you've invested through a SIP or made multiple contributions at different times, XIRR is the more accurate measure since it accounts for the timing of each cash flow.
Limitations of CAGR
- It hides volatility. A CAGR of 12% could come from a smooth, steady climb, or from a wild ride with a 40% loss one year followed by a 60% gain the next - CAGR looks the same either way.
- It assumes a single lump sum. CAGR is not designed for investments with periodic contributions like SIPs; use XIRR for those instead.
- It's backward-looking. Historical CAGR is not a guarantee of future performance, particularly for market-linked investments like stocks and equity mutual funds.
Who Is This Calculator For?
- Investors comparing the annualised performance of stocks, mutual funds, or other assets held for different time periods.
- Business owners tracking revenue or profit growth rate year over year.
- Anyone projecting how a lump sum could grow at an assumed rate of return over time.
This tool provides mathematical calculations only and is not investment advice. Consider consulting a registered investment advisor for guidance specific to your financial situation.
Frequently Asked Questions
What is considered a good CAGR?
This depends heavily on the asset class and time period. Broad equity market indices in India have historically delivered CAGR in the low-to-mid teens over long periods, though this varies significantly by the specific years chosen, and past performance never guarantees future results.
Can CAGR be negative?
Yes, if the final value is lower than the initial value, CAGR will be negative, reflecting an overall decline in value across the period, even if there were some years of growth in between.
Is CAGR the same as average annual return?
No. A simple average of yearly returns can be misleading because it doesn't account for compounding. CAGR reflects the actual compounded growth rate needed to go from the initial to the final value, which is usually lower than the simple average of volatile yearly returns.
Should I use CAGR or XIRR for my mutual fund SIP?
Use XIRR for SIPs, since you're investing at multiple points in time rather than as a single lump sum. CAGR is best suited to a single initial investment compared against a single final value.
Can I use this calculator for business revenue growth?
Yes, CAGR is commonly used to describe revenue, profit, or user growth for a business across multiple years, in exactly the same way it's used for investment returns.
Why does my CAGR look lower than the total return I remember?
Total or absolute return doesn't account for how long the money was invested. A 100% absolute return over 10 years is a very different achievement than the same 100% return over 2 years, and CAGR is what makes that difference visible.
Is this calculator free to use?
Yes, completely free, with no login and no data stored, and works on both mobile and desktop.
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