How to use it
- 1.Enter the starting value of the investment.
- 2.Enter the current or final value.
- 3.Enter the number of years between the two.
- 4.Compare the CAGR with an FD rate, inflation or an index over the same period.
CAGR Calculator
Work out the compound annual growth rate between a starting and final value. Change every input and see the estimate update immediately.
Adjust your assumptions
₹
₹0₹10,00,00,000
₹
₹0₹10,00,00,000
years
140
Your estimate
11.2%
CAGR (annualised return)
Initial value
₹5,00,000
Final value
₹8,50,000
Total gain
₹3,50,000
CAGR assumes one investment at the start and one value at the end. For several dated investments, use an XIRR model.
Educational estimate only. Methodology 2026.08. This is not a return promise, loan offer, tax filing or financial recommendation.
Results are estimates for learning and planning only. Tax rules, interest rates and scheme terms change from time to time, and your actual figures may differ. Please talk to a qualified financial advisor or chartered accountant before making any financial decision.
CAGR Calculator: what it calculates.
Compound annual growth rate (CAGR) turns the growth of an investment between two dates into one steady yearly rate. It is the standard way to compare a mutual fund, a stock, a property or a business metric across different time periods.
The CAGR calculator takes a starting value, a final value and the number of years in between, and returns the annual rate that would grow the first into the second with compounding. It also shows the total gain in rupees.
How the calculation works.
CAGR = (Final value ÷ Starting value)^(1 ÷ years) − 1
- Starting value is what the investment was worth at the beginning.
- Final value is what it is worth now or at the end.
- Years can include a fraction, e.g. 2.5 for two and a half years.
- CAGR assumes one investment at the start; for several dated investments, use XIRR instead.
Worked example. ₹5 lakh that grows to ₹8.5 lakh in 5 years has a CAGR of about 11.2%: (8.5 ÷ 5)^(1 ÷ 5) − 1 ≈ 0.112. The total gain is ₹3.5 lakh. A simple average would wrongly suggest 14% a year (70% ÷ 5).
What it helps with
- Puts investments held for different periods on the same yearly scale.
- Shows the total gain alongside the annual rate.
- Works for revenue, prices or any value that grows over time.
- Avoids the overstatement of a simple average return.
What it does not include
- CAGR hides the ups and downs between the start and end dates.
- It does not handle extra deposits or withdrawals during the period.
- Taxes, fees and dividends received are not included unless they are in the final value.
- A high past CAGR does not predict future returns.
Common questions.
What is a CAGR Calculator?
It is an educational tool that applies the disclosed compound annual growth rate method to the assumptions you enter.
Are the results guaranteed?
No. Results are estimates, not forecasts, approvals, quotations or guarantees.
Why should I change the assumptions?
Testing conservative and optimistic inputs exposes uncertainty instead of hiding it behind one number.
Does it include tax and fees?
Only when a tax or fee is shown as an explicit input or result. Otherwise it is excluded.
How accurate is the calculator?
The mathematics follows the stated methodology, while real outcomes depend on rates, timing, rules, fees and circumstances.
Can I use this result as financial advice?
No. Use it for education and scenario comparison, then verify decisions with official documents or a qualified professional.
Why is inflation shown?
Inflation translates a future amount into approximate present-day purchasing power. The default 6% is editable and is not a forecast.
How often should I recalculate?
Recalculate when rates, income, contributions, rules, goals or repayment terms change.
Can the result differ from a bank or platform?
Yes. Institutions may use different compounding dates, rounding, charges and eligibility rules.
Is my data uploaded?
No. Calculations run locally in your browser and the input values are not sent to a calculation server.