CAGR Calculator
Calculate the Compound Annual Growth Rate of your investment — enter your initial value, final value, and time period to see the annualized growth rate that connects them.
Implied Year-wise Growth
This chart shows the implied value of your investment at the end of each year, assuming it grew at a constant CAGR throughout the period.
How CAGR Is Calculated
CAGR works backward from your starting and ending values to find the constant annual growth rate that would connect them, rather than projecting a future value from a fixed rate.
CAGR Formula
CAGR = (FV / IV)1/T − 1
Initial Value (IV)
₹1,00,000.00
Final Value (FV)
₹2,50,000.00
Time Period (T)
5 Years
CAGR
20.11%
Where: IV is the initial value of the investment, FV is the final value, and T is the number of years between them. The result is the constant annual growth rate that would take your investment from its initial value to its final value, assuming steady compounding throughout the period.
CAGR Calculation Example
See how your investment's annualized growth rate is derived from the values you've entered.
Worked Example
Suppose your investment started at ₹1,00,000.00 and grew to ₹2,50,000.00 over 5 years.
That's a total growth of ₹1,50,000.00, or 2.50x your original investment.
Annualized over the holding period, this works out to a Compound Annual Growth Rate of 20.11%.
A few things worth keeping in mind about CAGR:
CAGR smooths out year-to-year volatility into a single average growth figure — it doesn't reflect how bumpy or steady the actual journey was.
It's most useful for comparing investments held over different time periods on a fair, annualized basis.
A negative CAGR simply means the final value was lower than the initial value over the period measured.
Year-wise Implied Value
See the implied value of your investment at the end of each year, based on the calculated CAGR.
Swipe horizontally to view the complete year-wise breakdown.
| Year | Implied Value | Growth from Initial | % of Total Growth |
|---|---|---|---|
| 1 | ₹1,20,112.44 | ₹20,112.44 | 13.41% |
| 2 | ₹1,44,269.99 | ₹44,269.99 | 29.51% |
| 3 | ₹1,73,286.21 | ₹73,286.21 | 48.86% |
| 4 | ₹2,08,138.30 | ₹1,08,138.30 | 72.09% |
| 5 | ₹2,50,000.00 | ₹1,50,000.00 | 100.00% |
Frequently Asked Questions
Common questions on how CAGR works, how it differs from absolute and average returns, and what counts as a good CAGR.
Disclaimer
Results are estimates for informational purposes only and may differ from actual values. Do not make financial, investment, tax, or legal decisions based solely on these results. Verify important calculations with official sources or a qualified professional. CalcMint is not liable for any loss or damage resulting from the use of this calculator.
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