CAGR calculator
Find the average yearly growth rate between two values. Free CAGR calculator. Enter a starting value, an ending value and the years to find the average yearly growth rate, with the formula explained.
Example with the starting values
- Initial value: ₹1,00,000
- Final value: ₹2,00,000
- Duration of investment: 5 years
Result:
- Initial value: ₹1,00,000
- Total gain: ₹1,00,000
- CAGR: 14.87%
How it is calculated
CAGR (compound annual growth rate) is the steady yearly rate that would take a starting value to an ending value over a number of years. It smooths out the ups and downs, so it is useful for comparing investments, but it hides how bumpy the ride was.
Formula: CAGR = (Final ÷ Initial)1/t − 1, where t is the number of years.
Example: ₹1,00,000 that becomes ₹2,00,000 in 5 years has a CAGR of about 14.9%.
Learn the idea behind it
For learning only. The rate is an assumption you choose, not a promise or prediction. Real returns change, investments can lose money, and tax, charges and inflation are not included. This is not investment advice.