CAGR Calculator
Calculate the Compound Annual Growth Rate of your investment with Ganak Mitra’s CAGR Calculator. Enter your initial investment value, final value, and investment duration to find the average annual growth rate of your investment.
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Compound Annual Growth Rate
--Average annualized growth over the selected durationEnter the investment values and duration to calculate CAGR.
Investment Summary
- Initial Investment
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- Final Value
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- Investment Duration
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- Absolute Gain / Loss
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- Absolute Return
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- CAGR
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About CAGR Calculator India
CAGR Calculator is a free online investment growth calculator that finds the Compound Annual Growth Rate between a starting value and an ending value. Enter the initial investment, final value, and duration to see annualized growth, absolute gain or loss, and absolute return.
Compare growth per year.
Supports positive and negative CAGR.
Data stays in your browser.
Works on all devices.
How to Use CAGR Calculator?
Add the starting investment value.
Add the value at the end.
Enter years and months.
Check annualized and absolute returns.
CAGR Formula
CAGR converts the total change between the initial and final values into a smoothed annual growth rate:
Final Value is the ending value, Initial Value is the starting value, and Years is the total duration. Months are converted into a fraction of a year. If the final value is zero, the CAGR is -100%.
CAGR Calculation Example
Suppose an investment of ₹1,00,000 becomes ₹1,80,000 after 5 years.
The investment's smoothed annual growth rate is approximately 12.47%. Its absolute gain is ₹80,000 and its absolute return over the complete five-year period is 80%.
CAGR vs Absolute Return
| Comparison | CAGR | Absolute Return |
|---|---|---|
| What it shows | Smoothed annual growth rate | Total gain or loss for the full period |
| Time period | Accounts for investment duration | Does not annualize the result |
| Useful for | Comparing growth across different periods | Understanding the overall percentage change |
| Example | ₹1,00,000 to ₹1,80,000 in 5 years = 12.47% p.a. | ₹1,00,000 to ₹1,80,000 = 80% |
Note: CAGR smooths the full-period return and does not show yearly market fluctuations.
Popular Uses
Compare annualized fund growth.
Measure long-term value change.
Annualize revenue or value growth.
Compare asset growth over time.
More Related Calculators
Why Use GanakMitra CAGR Calculator?
Use this calculator to compare annualized growth across investments or assets with different holding periods. It also shows absolute gain or loss and absolute return, works with years and months, and keeps the calculation in your browser.
Compound annual growthNegative CAGRAbsolute returnYears and monthsPrivate calculation
CAGR Calculator FAQ
What is CAGR?
CAGR stands for Compound Annual Growth Rate. It shows the average annual growth rate of an investment over a period of time, assuming the growth happens at a steady compounded rate.
How do I calculate CAGR?
CAGR is calculated using the formula: CAGR = ((Final Value / Initial Value) ^ (1 / Years) - 1) × 100.
Can CAGR be negative?
Yes. CAGR can be negative when the final value of an investment is lower than the initial value.
What is a good CAGR?
A good CAGR depends on the type of investment, risk level, and time period. Higher CAGR usually indicates better annualized growth, but risk should also be considered.
What is the difference between CAGR and absolute return?
Absolute return shows the total gain or loss over the full period, while CAGR shows the average annual growth rate.
Can I use CAGR for mutual funds?
Yes. CAGR is commonly used to understand the annualized return of mutual funds over a selected period.
Is CAGR the same as annual return?
CAGR represents an annualized growth rate over multiple years. Actual annual returns may vary each year.
Does CAGR guarantee future returns?
No. CAGR is based on past or selected values. It does not guarantee future investment performance.