CAGR Calculator
Growth rate between two values, or the future value at a given CAGR.
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This CAGR calculator finds the compound annual growth rate between a starting value and an ending value over a number of years. Switch to reverse mode to find the future value for a target growth rate. It works for investments, stock prices, company revenue, property values or any figure that grows over time.
What is a CAGR Calculator?
CAGR, or Compound Annual Growth Rate, is the steady yearly growth rate that takes a value from where it started to where it ended over a given number of years. Real growth is rarely smooth: an investment might rise 30% one year and fall 10% the next. CAGR replaces that bumpy path with one constant rate that gives the same end result.
Because it accounts for compounding and time, CAGR is the standard way to compare investments, fund returns, company sales growth or price changes over different periods. A CAGR calculator saves you from working out the fractional power by hand.
How does the CAGR Calculator work?
In CAGR mode, the calculator divides the ending value by the starting value, raises the result to the power of 1 divided by the number of years, and subtracts 1.
In reverse mode, it starts from the growth rate and works forward: the starting value is multiplied by (1 + rate) for each year.
How to use the CAGR Calculator step by step
- Choose CAGR or Future value mode.
- Enter the starting value.
- In CAGR mode, enter the ending value; in reverse mode, enter the growth rate.
- Enter the number of years; decimals like 4.5 are fine.
- Read the CAGR or future value, plus absolute growth and doubling time.
- Copy the result for your notes.
CAGR Calculator example with real numbers
An investment of ₹1,00,000 made 6 years ago is worth ₹2,50,000 today.
| Example input | Value |
|---|---|
| Find | CAGR |
| Starting value | 1,00,000 |
| Ending value | 2,50,000 |
| Number of years | 6 |
| Example output | Value |
|---|---|
| Compound annual growth rate | 16.50% |
| Absolute growth | 150.00% |
| Growth multiple | 2.50× |
| Years to double at this rate | 4.5 years |
The absolute growth is 150.00%, but the CAGR calculator shows the investment grew at 16.50% a year. At that pace, money doubles roughly every 4.5 years.
Key features of this CAGR Calculator
- CAGR and reverse CAGR in one tool
- Works with any unit: rupees, units, sales, prices
- Fractional years
- Absolute growth and growth multiple
- Doubling time
Who should use the CAGR Calculator?
Who is this CAGR Calculator for?
- Investors comparing funds and stocks
- Business owners measuring sales growth
- Students and analysts preparing reports
- Property owners checking price appreciation
Practical use cases
- Finding the yearly return on a stock bought 6 years ago
- Measuring revenue growth from ₹2 crore to ₹5 crore in 5 years
- Projecting a portfolio at 12% CAGR
- Comparing property growth with mutual fund returns
Key benefits
- Comparable numbers: one rate across any time period.
- Two directions: past growth or future projection.
- Universal: not limited to money.
- Quick: no logarithms needed.
Tips for better results
- Use CAGR for single investments; use XIRR when money goes in or out at different times.
- Pick periods carefully; starting at a market peak or bottom changes CAGR a lot.
- Compare CAGRs over the same dates.
- Remember CAGR hides volatility along the way.
Common mistakes to avoid
- Using CAGR for SIP investments.
- Dividing total growth by the number of years (that is simple average growth, not CAGR).
- Comparing a 3-year CAGR with a 10-year CAGR as if they were equal.
- Ignoring dividends or rent when measuring total return.
Limitations of this CAGR Calculator
- It assumes a single starting and ending value.
- It does not show the ups and downs along the way.
- Very short periods can produce misleadingly large CAGRs.
CAGR Calculator vs other ways to calculate
| Measure | Accounts for compounding | Handles cash flows | Typical use |
|---|---|---|---|
| CAGR | Yes | No | Lumpsum growth, revenue, prices |
| Average annual growth | No | No | Rough summaries |
| XIRR | Yes | Yes | SIPs, irregular investments |
| Absolute return | No | No | Periods under a year |
In Excel, =(B/A)^(1/n)−1 or =RRI(n, A, B) gives CAGR. For investments with dates, the mutual fund returns calculator works out the period for you.
Privacy and data handling
This CAGR Calculator runs entirely in your browser. The numbers you type are not sent to Qorico or stored on any server, and nothing is saved after you close the page. The Copy and Download buttons create the result on your own device. If the page has analytics turned on, it may count that a calculation happened, but it does not record the values you entered.
CAGR Calculator FAQs
What is CAGR?
CAGR is the constant yearly growth rate that would take a value from its starting level to its ending level over a period, assuming growth compounds each year.
How is CAGR calculated?
CAGR = (ending value ÷ starting value)^(1/years) − 1. For ₹1 lakh growing to ₹2.5 lakh in 6 years, CAGR is about 16.5%.
What is the difference between CAGR and XIRR?
CAGR works for one starting and one ending value. XIRR handles many cash flows at different dates, such as SIPs and withdrawals.
Can CAGR be negative?
Yes. If the ending value is lower than the starting value, CAGR is negative.
What is reverse CAGR?
It works backwards from a growth rate to find the future value, or the rate needed to reach a target.
What is a good CAGR?
It depends on the asset. A CAGR above inflation preserves buying power; long-term equity CAGRs of 10–14% are often cited for India, but nothing is guaranteed.
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Sources and references
We checked the method and the current figures used in this CAGR Calculator against these official and primary sources:
Written and reviewed by the Qorico Team
