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CAGR Calculator

Calculate annualised growth between two values or project a future value from an assumed CAGR.

By Nitin Raturi · Last reviewed

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How to use this CAGR Calculator

Compare two values over time or project a value from an annual growth assumption.

  1. Choose Calculate CAGR or Project value.
  2. Enter the starting value and holding period.
  3. Enter an ending value or CAGR, depending on the selected calculation.
  4. Read the annualised rate, total return or projected value with its assumptions.

Good to know

  • Tap the ⓘ next to a field for its range and limitations.

CAGR compares one starting value with one ending value. It does not include intermediate deposits or withdrawals. Your assumptions stay in the URL fragment, not in the page request.

Calculation

Calculation

Choose whether to calculate an annualised rate from two values or project a future value from an assumed CAGR.

How to fill it in

  • Calculate CAGR: enter a starting value, ending value and period.
  • Project value: enter a starting value, annual CAGR and period.

Example

The default calculation turns ₹1,00,000 into ₹1,50,000 over 5 years at 8.45% CAGR.

Tip: CAGR assumes one starting value and one ending value, with no interim cash flows.

Starting value

The value at the beginning of the period before growth or decline.

How to fill it in

  • Enter a positive amount up to ₹1 lakh crore.

Example

The default example starts at ₹1,00,000.

Ending value or target

In Calculate CAGR mode, this is the value at the end of the period. It can be above or below the starting value.

How to fill it in

  • Enter a positive amount up to ₹1 lakh crore.

Example

The default ending value is ₹1,50,000 after 5 years.

Keep in mind: CAGR does not describe contributions or withdrawals made during the period.

Holding period

The length of time between the starting and ending values, expressed in years.

How to fill it in

  • Enter a period from 0.01 to 100 years. Fractional years are allowed.

Example

The default example uses 5 years.

Tip: For exact dated cash flows, use a measure such as XIRR instead.

Annualised return (CAGR)

8.45%

₹1,00,000 to ₹1,50,000 over 5.00 years.

Absolute change
₹50,000
Total return
50%

CAGR smooths the result into one annual rate. It does not show volatility, timing of interim cash flows, taxes, fees or inflation.

ChangelogHow we test this calculatorEmbed this calculator

How this calculator works

CAGR is the single effective annual rate that links one starting value to one ending value over a chosen period.

  1. Step 1Find the change₹50,000Compare the ending and starting values.
  2. Step 2Set the period5 yearsUse the time between the two values.
  3. Step 3Annualise the result8.45%Calculate the equivalent compounded annual rate.

The calculator also projects an ending value from an assumed CAGR. Both calculations assume one start value, one end value and no cash flows in between.

Formula

The default CAGR example
Total return
(ending value ÷ starting value − 1) × 100%
CAGR
((ending value ÷ starting value)^(1 ÷ years) − 1) × 100%
  1. Starting value₹1,00,000
  2. Ending value₹1,50,000
  3. Absolute change₹50,000
  4. Total return50%
  5. Annualised CAGR8.45%

In project mode, the formula is starting value × (1 + annual rate)^years. The annual rate is effective, so it compounds once per year in this model.

Reading the result

  • CAGROne start and end valueUseful when the investment has no intermediate deposits or withdrawals.
  • XIRRDated cash flowsUses the timing and size of multiple investments and receipts.

The default projection at 12% for 5 years grows ₹1,00,000 to ₹1,76,234 under a constant annual assumption.

Common amounts use rupees, lakh or crore. Extremely small or large outputs use scientific notation so the result stays readable.

What CAGR leaves out

  • Interim pathIt does not show gains or losses between the two values.
  • Cash-flow timingDeposits and withdrawals are not included.
  • Taxes and feesCosts are not subtracted from the values.
  • Future outcomesA historical rate does not predict future performance.

CAGR, XIRR or average return?

  • CAGROne amount in, one amount out, no deposits between.
  • XIRRSeveral dated deposits or withdrawals, such as a SIP.
  • Average returnA list of yearly returns, averaged two ways.

CAGR only sees the first and last values. If money went in or came out along the way, use the XIRR calculator, which weighs each dated cash flow.

For a series of yearly returns, the average return calculator gives both the arithmetic and the geometric average; the arithmetic one is never lower.

A CAGR above inflation is what grows buying power; the inflation calculator shows the rate prices have risen. To project a single investment forward, the lumpsum calculator adds monthly compounding and an inflation view.

Common mistakes

  • Mistake: Treating CAGR as the return earned in every year.

    Instead: Read it as one smoothed annual rate; actual year-to-year results can vary.

  • Mistake: Using only the start and end values when there were deposits or withdrawals.

    Instead: Use a dated-cash-flow measure such as XIRR for irregular flows.

  • Mistake: Calling absolute change the annualised return.

    Instead: Compare rupee change, total percentage return and CAGR as separate figures.

This calculator is an arithmetic illustration, not an investment recommendation. Taxes, fees, inflation and risk are not assessed.

Checking the method

A separate script recomputes every test case two ways: by formula, and by searching for the rate that grows the start into the end.

Read how we test our calculators, or browse more money calculators.

Frequently asked questions

What is CAGR?

Compound annual growth rate is the effective annual rate that connects a starting value and ending value over a stated period, assuming compounding.

How is CAGR calculated?

Divide ending value by starting value, raise that ratio to 1 divided by the number of years, then subtract 1.

How is CAGR different from total return?

Total return compares the full change over the period. CAGR expresses that change as one equivalent annual compound rate.

Does CAGR include deposits or withdrawals?

No. It uses only a starting value, ending value and period. Use XIRR when you need to account for dated intermediate cash flows.

Can CAGR be negative?

Yes. A positive ending value below the starting value produces a negative CAGR greater than -100%.

Does CAGR predict future performance?

No. The projection mode applies a rate you choose as a constant assumption. Actual results can differ.

Are taxes, fees or inflation included?

No. Enter values on a consistent basis; this calculator does not adjust them for taxes, fees or inflation.

Sources and methodology

The formulas are standard time-value-of-money results. We check every figure against golden values worked out independently, by closed form and by month-by-month simulation; see the methodology.

Written and maintained by Nitin Raturi, a software engineer (about the author). Last reviewed 22 Oct 2026; next review due by . Found an error? Tell us.

Changelog

  • : Registered at the owner's request; demand metrics remain unverified. Calculates CAGR or projects a value; default example CAGR is 8.45% over 5 years.

  • Lumpsum Calculator

    Estimate what a one-time investment could become, compare the same amount invested monthly, and see an inflation-adjusted value.

  • Average Return Calculator

    Compare the simple and compound (geometric) average of yearly returns, and see what they did to your money.

  • SIP Calculator

    See what a monthly SIP could grow to, the SIP a goal needs, or how long it may take, with every assumption shown and editable.

  • ROI Calculator

    Calculate net profit, total ROI, an equivalent annual return and the sale amount needed to break even.