Find the true annual growth rate of your investment using our Compound Annual Growth Rate (CAGR) Calculator. Perfect for mutual funds, stocks, FDs, SIP returns and long-term goals.
Difference between ending value and beginning value.
CAGR stands for Compound Annual Growth Rate. It is a standard way to describe how fast an investment has grown on average every year over a specific period of time. Instead of looking at yearly ups and downs, CAGR smooths the journey and gives you a single annual growth percentage that connects the starting value and ending value.
For example, imagine you invested ₹1,00,000 in a mutual fund and it became ₹1,85,000 in five years. The fund may have gone up and down each year, but CAGR tells you the equivalent steady yearly growth rate that would turn ₹1,00,000 into ₹1,85,000 in exactly five years.
Because CAGR ignores volatility and focuses on the start and end points, it is widely used by investors, financial planners and analysts to compare different investments fairly, even when their short‑term performance is very different.
Looking only at total return can be misleading. Saying an investment grew 85% in five years does not tell you how powerful the growth really was each year. CAGR converts that total growth into a yearly rate, which makes it easier to understand, compare and plan.
Our CAGR Calculator on Calculator.CL is designed to be simple, accurate and transparent. You just enter beginning value, ending value and time period in years, and the tool instantly shows CAGR, total gain and total percentage return.
The standard and widely accepted formula for Compound Annual Growth Rate is:
CAGR = \((Ending\ Value \div Beginning\ Value)^{1/Years} - 1\) × 100
Suppose an investment grows from ₹1,00,000 to ₹1,85,000 in five years. Then:
First, find the growth multiple: 1,85,000 ÷ 1,00,000 = 1.85. Then take the fifth root of 1.85 and subtract 1:
CAGR ≈ \((1.85)^{1/5} - 1\) × 100 ≈ 13.16% per year
Our calculator uses this same formula in JavaScript, using the built‑in Math.pow
function to ensure mathematical accuracy. We validate that all inputs are positive and that the
time period is greater than zero before performing the calculation.
Using the CAGR Calculator on Calculator.CL is straightforward even if you are not from a finance background. Follow these steps:
The UI is responsive and works well on mobile, tablet and desktop. Tailwind CSS is used for a clean, modern look, and the calculations are performed instantly in your browser without sending your numbers to any server.
CAGR is very powerful, but it is one of many ways to look at returns. A simple total return only tells you how much the investment grew overall, without considering how long it took. CAGR adds the time dimension and expresses growth as a yearly rate.
On the other hand, methods like XIRR are used when there are multiple cash flows at different times, such as SIP investments or withdrawals. This CAGR Calculator assumes a single investment at the beginning and a single value at the end, which is perfect for lumpsum investments, FD renewals, property value growth and long‑term holdings.
For most everyday use cases where you want to check how your portfolio or one specific investment has behaved over a fixed period, CAGR is accurate, intuitive and widely accepted across the financial industry.
