CAGR Calculator
Find the compound annual growth rate (CAGR), the equivalent yearly growth rate between your starting and ending values.
What is CAGR?
CAGR expresses the change between a starting and ending value as one compounded annual rate, as if the investment grew by the same percentage each year. It does not show the actual return in each year or the changes in value along the way.
How it's calculated
The calculator uses CAGR = (end ÷ begin)^(1 ÷ years) − 1, shown as a percentage. This accounts for compounding between the two values. It does not account for money added or withdrawn during that period.
An example
Grow ₹1 lakh into ₹2 lakh in 6 years and the CAGR is about 12.25% a year, the rate that doubles your money in that time.
Questions people ask
CAGR or absolute return?
Absolute return tells you the total gain; CAGR tells you the yearly rate, which is what lets you compare investments held for different lengths of time.
Does CAGR show risk?
No. Two investments can have the same CAGR despite different changes in value along the way. Read the rate alongside the risks and investment history.
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