CAGR Calculator
A CAGR Calculator is an online tool that helps you calculate the Compound Annual Growth Rate (CAGR) of your investment over a specific period. It displays the average annual rate, assuming that your investment grows at a steady compounded rate each year.
Whether you are investing in stocks, mutual funds, SIPs, real estate, gold, or business investments, CAGR Calculator is one of the most important tools to measure long-term performance.
What is CAGR?
CAGR stands for Compound Annual Growth Rate. It indicates the average annual percentage rate at which your investment—or the value of an asset—grows each year.
Unlike simple return calculations, CAGR provides you with a more intuitive and accurate picture of your investment growth.
CAGR Formula
CAGR (%) = (final value/Initial Investment)1/n – 1
Where:
- Initial Investment = Amount invested initially
- Final Value = Value after investment period
- n = Number of years
How to Use This CAGR Calculator?
Using this calculator is very simple:
- Enter your Initial Investment Amount
- Enter the Final Value of your investment
- Enter the Time Period
- Select whether the period is in Years or Months
- Click on Calculate CAGR
The calculator instantly shows:
- Total Investment
- Total Returns
- Final Value
- CAGR Percentage
- Investment vs Returns Doughnut Chart
Example of CAGR Calculation
Suppose:
- Initial Investment = ₹1,00,000
- Final Value = ₹2,00,000
- Investment Duration = 5 Years
Then the CAGR will be:
(₹100000/₹200000)1/5 – 1
The annual compounded growth rate is approximately 14.87% per year.
Why is CAGR Important?
- Measures actual annual investment growth
- Helps compare mutual funds, stocks, and portfolios
- Considers compounding effect
- Useful for long-term financial planning
- Gives a standardized growth rate
Advantages of Using our CAGR Calculator
- Free and easy to use
- Instant results
- Mobile responsive design
- Visual chart representation
- Supports years and months
- Accurate CAGR calculation