CAGR calculator.
Find compound annual growth from starting value, ending value and holding period, with total return shown separately.
CAGR inputs
CAGR = (ending value / starting value)^(1 / years) − 1. Assumes no intervening deposits or withdrawals. Ending value zero gives −100%; starting value must be positive. Durations below one year extrapolate an annualized rate, not an achieved one-year return.
How this cagr calculator works
CAGR is (ending value / starting value) raised to 1 / years, minus one. It expresses one constant annual growth rate that connects two values. The starting value must be positive; a zero ending value gives −100%. No deposits or withdrawals between the endpoints are assumed.
A worked example
An investment increasing from ₹1,00,000 to ₹1,50,000 over five years has 50% total growth but approximately 8.4472% CAGR. Dividing 50% by five would give 10%, which ignores compounding and does not reproduce the ending balance.
Can I use CAGR for a SIP with monthly deposits?
Not by dividing the ending value by total deposits: that treats every installment as if it were invested from the start. Use XIRR with actual dates and cash flows to measure such a return. Use the SIP calculator to project a future scenario rather than measure a past return.
Calculations run on your device. Review your results before exporting or sharing them.
Use endpoints without intervening cash flows
The two values should describe the same investment or comparable business measure. If you added fresh money, endpoint growth mixes investment performance with contributions. Use XIRR for dated investor cash flows instead of treating deposits as gains.
CAGR smooths a path; it does not show volatility, drawdowns or the order of returns. Two investments can have the same CAGR and very different experiences between the endpoints. Short periods annualize sharply, so keep the actual holding period visible when sharing.
Published by ToolMitra — methods and editorial approach.