CAGR Calculator

Inputs

$
$
years
0.150

Results

Enter valid inputs (beginning value > 0, duration > 0) to see results.

Chart

Chart appears once inputs are valid.

Insights & Notes

CAGR (Compound Annual Growth Rate) is an annualized growth rate between a beginning and an ending value over a fixed period.

  • It assumes a smooth growth path and ignores intermediate cash flows.
  • If the ending value is lower than the beginning value, CAGR becomes negative (that’s valid).
  • Date-based mode uses the actual day count between two dates to compute the duration in years.
  • Inflation-adjusted (real) CAGR uses: Real CAGR = ((1 + Nominal) / (1 + Inflation)) − 1.

CAGR Calculator – Calculate Compound Annual Growth Rate Online

The CAGR Calculator helps you calculate the Compound Annual Growth Rate of an investment over a specific period. CAGR shows the annualized rate of growth assuming the investment grew at a steady rate, even if the actual returns fluctuated year to year.

This calculator is ideal for evaluating stocks, mutual funds, ETFs, crypto, business growth, portfolio performance, and long-term investments.

What is CAGR (Compound Annual Growth Rate)?

CAGR represents the smoothed annual growth rate of an investment between a starting value and an ending value over a fixed time period.

In simple terms, it answers:

“At what constant annual rate did my investment grow?”

Unlike absolute return, CAGR accounts for time, making it one of the most reliable ways to compare long-term investment performance.

How This CAGR Calculator Works

This calculator computes CAGR using the standard financial formula based on:

  • Beginning investment value
  • Ending (or target) investment value
  • Investment duration (in years or exact dates)

The result is expressed as a percentage per year, helping you compare returns across different investments and timeframes.

Why Use a CAGR Calculator?

Manual CAGR calculations are error-prone, especially for longer durations. This calculator ensures:

  • Accurate annualized return calculation
  • Instant results with high precision
  • Easy comparison between multiple investments
  • Clear distinction between growth rate and absolute profit

Key Features of This CAGR Calculator

  • Calculate CAGR for stocks, mutual funds, crypto, and portfolios
  • Supports year-based and date-based calculations
  • Shows growth multiple and absolute gain
  • Allows negative CAGR for declining investments
  • Optional inflation-adjusted CAGR (real returns)
  • Reverse CAGR mode to calculate required CAGR for a target value

CAGR vs Absolute Return

Absolute return only shows how much your investment grew. CAGR shows how fast it grew per year.

Example: an investment that doubles in 10 years

  • Absolute return: 100%
  • CAGR: about 7.18% per year

CAGR is far more useful when comparing investments held for different durations.

When CAGR Is Useful (and When It Isn’t)

CAGR is useful for

  • Long-term investments
  • Comparing historical performance
  • Evaluating portfolio growth
  • Measuring business or revenue growth

CAGR is NOT suitable for

  • Investments with regular cash flows (use XIRR instead)
  • SIPs or periodic investments
  • Short-term speculative trades

This calculator intentionally focuses only on pure CAGR, keeping results mathematically correct.

Inflation-Adjusted CAGR (Real CAGR)

Nominal returns can be misleading during high inflation periods. This calculator optionally allows you to adjust CAGR for inflation, helping you understand:

  • Real purchasing power growth
  • Whether your investment actually beat inflation
  • Long-term wealth creation in real terms

Required CAGR Calculator (Target-Based)

You can also calculate the required CAGR needed to reach a future investment goal.

Useful for:

  • Financial planning
  • Retirement corpus estimation
  • Business revenue targets

Simply enter your starting value, target value, and time period.

Why CAGR Can Be Misleading (Important Insight)

CAGR assumes smooth, uninterrupted growth. Real investments rarely grow smoothly. They fluctuate. CAGR hides volatility.

That doesn’t make CAGR wrong — it just makes it optimistic by design. Smart investors use CAGR with context, not in isolation.

Who Should Use This Calculator?

  • Long-term investors
  • Mutual fund and stock market investors
  • Portfolio managers
  • Startup founders tracking business growth
  • Anyone comparing investment performance across time

Frequently asked questions

What is CAGR (Compound Annual Growth Rate)?▼
CAGR is the smoothed annual growth rate of an investment between a beginning value and an ending value over a specific time period. It answers: “At what constant annual rate did my investment grow?”
How is CAGR different from absolute return?▼
Absolute return shows how much an investment grew overall. CAGR shows how fast it grew per year, accounting for time. CAGR is more comparable across different holding periods.
When should I not use CAGR?▼
CAGR is not suitable for investments with regular cash flows (use XIRR instead), SIPs or periodic investments, and short-term speculative trades. This calculator intentionally focuses only on pure CAGR.
Can CAGR be negative?▼
Yes. If the ending value is lower than the beginning value, CAGR will be negative, reflecting a declining investment.
What is inflation-adjusted CAGR (real CAGR)?▼
Real CAGR adjusts nominal CAGR for inflation to estimate purchasing-power growth. It helps you understand whether an investment actually beat inflation over time.
What is required CAGR (target-based CAGR)?▼
Required CAGR is the annualized growth rate needed to reach a target value from a starting value over a chosen time period. It is useful for goal planning and target setting.

Final Note

CAGR doesn’t tell you the whole story — but it tells the most comparable one.

If you want a clean, accurate, and distraction-free way to evaluate long-term growth, this CAGR Calculator does exactly that.