CAGR Calculator

Compound annual growth rate

Reviewed by the PaisaTools Editorial Team · Last reviewed September 2026

How to use: Enter what you started with, what it became, and how many years.

Example₹1 lakh → ₹2 lakh in 5 years → 14.87% CAGR

What did you start with?

₹

What is it worth now?

₹

Over how many years?

CAGR (annual growth rate)

14.87%

Absolute gain

₹1,00,000

Total growth

100.0%

Steady growth path

Value

CAGR is the steady yearly rate that would grow your initial value to the final value over the period — smoothing out the ups and downs.

CAGR = (Final ÷ Initial)^(1 ÷ years) − 1

How it works

CAGR answers: “at what steady yearly rate did this grow?” It smooths out the bumpy real path into one comparable number — (Final ÷ Initial)^(1 ÷ years) − 1.

Method & sources

CAGR = (End value ÷ Start value)^(1/years) − 1 — the standard geometric annualised-return definition used across finance to compare investments over different periods.

What this doesn't cover

Smooths out volatility — it says nothing about the path taken or the risk.
Past CAGR does not predict future returns.

Frequently asked

What is CAGR?: Compound Annual Growth Rate — the smooth, constant yearly rate that would take your initial value to the final value over the period, ignoring year-to-year volatility.
Why use CAGR instead of total return?: CAGR lets you compare investments held for different durations on an apples-to-apples annual basis. A 100% total gain over 5 years (14.9% CAGR) is very different from 100% over 2 years (41.4% CAGR).
What's a good CAGR?: It depends on the asset class. Long-term Indian equity indices have delivered roughly 11-13% CAGR. Anything consistently above inflation (5-6%) is growing your real wealth.

Related guides

Writing about this? Put the calculator in your article

Free for any site. One line of HTML, no signup, no ads, and we keep the rates and rules current so you never have to.

Related tools

All Investing tools →

Loading…