CAGR Calculator
Calculate the compound annual growth rate of your investment.
Investment Details
This calculation is an estimate. Actual investment returns can vary based on market conditions, fees and compounding frequency.
CAGR Report
Not calculatedYear-by-Year Growth Schedule
Enter investment details to generate the schedule| Year | Value at Year End | Profit from Previous Year | Cumulative Profit |
|---|---|---|---|
| Your detailed schedule will appear here. | |||
Report generated by TheProfitEra™ on . Values are calculated using the compound annual growth rate formula.
Measure the annualised growth rate of an investment between its starting value and ending value over a chosen number of years.
How Does the CAGR Calculator Work?
Enter the initial value, final value and time period. The calculator finds the constant annual growth rate that would connect those two values.
CAGR Calculator Formula
CAGR = ((Final Value / Initial Value)^(1 / Years) − 1) × 100. It is an annualised measure and does not describe the path taken between values.
Example Calculation
If ₹1,00,000 grows to ₹2,50,000 over 5 years, the calculator estimates the annualised CAGR and separates it from the absolute return.
How to Interpret the Result
Use CAGR to compare annualised growth over matching periods, while checking absolute return and the underlying path separately.
Important Limitations
CAGR smooths the start and end values into one annual rate. It does not show volatility, interim losses, cash flows, taxes, fees, or the risk taken.
Benefits of Using a CAGR Calculator
Compare investments across different holding periods.
Distinguish annualised growth from total percentage gain.
Review a year-by-year illustrative value path.
Frequently Asked Questions
What does CAGR tell me?
CAGR shows the constant annualised growth rate that links an initial value to a final value over a period.
Is CAGR the same as absolute return?
No. Absolute return measures the total percentage change, while CAGR expresses that change as an annualised rate.
Does CAGR show yearly volatility?
No. CAGR smooths the result into one annual rate and does not show interim gains, losses or volatility.