CAGR Calculator
Calculate the Compound Annual Growth Rate (CAGR) between a starting value and an ending value over a chosen period. This is a calculation based on the values you supply, not a forecast, promise, or recommendation.
Your values
Enter a starting value, an ending value, and the number of years between them.
In rupees, at the start of the period. Must be greater than zero.
In rupees, at the end of the period. Can be lower than the starting value.
Your result
Going from ₹1,00,000 to ₹2,00,000 over 5 years works out to a compound annual growth rate of 14.87%. This is a calculation from the values you entered, not a forecast of future performance.
Going from one value to another over 5 years, the calculation shows a compound annual growth rate (CAGR) of 14.87%. This is a calculation from the values you entered, not a forecast of future performance.
To project a future value forward instead of calculating a past rate, see the SIP or Lumpsum Calculator.
Learn about this calculator
Calculates the Compound Annual Growth Rate (CAGR) between a starting and ending value over a chosen period.
CAGR is the single, smoothed annual rate that would take a starting value to an ending value over a given number of years, assuming steady compounding — a common way to compare growth over different periods on a like-for-like basis.
How it works
It compares the starting and ending values you provide and works out what constant annual rate, compounded over the number of years entered, would connect the two.
What each input means
- Starting value
- The value at the beginning of the period. Must be greater than zero.
- Ending value
- The value at the end of the period. Can be lower than the starting value, including zero or negative.
- Period (years)
- The number of years between the two values.
What the results mean
- CAGR
- The single smoothed annual growth rate that connects the starting and ending values over the period.
Assumptions
- Growth is assumed to have happened at one constant, steady rate throughout the period — the actual path is not modelled.
Limitations
- CAGR hides any actual year-to-year volatility — two very different journeys can show the same CAGR.
- For a negative ending value with a period other than exactly 1 year, no real annualized rate exists mathematically, and the tool shows that rather than a misleading number.
Common mistakes
- Treating CAGR as a forecast or a promise, rather than a description of what already happened between two values.
- Assuming a smooth, unbroken rise just because the CAGR is positive — the value could have swung sharply in between.
Example
For example, growing from ₹1,00,000 to ₹2,00,000 over 5 years works out to a CAGR of roughly 14.9% — the constant annual rate that would double the amount over that period.
FAQ
Does CAGR predict what my investment will return in future?
No. CAGR only describes what already happened between two values you supply — it is backward-looking, not a forecast.
What does a negative CAGR mean?
It means the ending value was lower than the starting value — a loss over the period, expressed as an annualized rate.
See the XIRR Calculator for a similar backward-looking rate that also accounts for the timing of multiple cash flows, not just two point values.
For illustration only. Not investment advice. Mutual fund investments are subject to market risks; read all scheme related documents carefully. Returns assumed are hypothetical and not guaranteed.