CAGR Calculator

What this tool does

The CAGR Calculator finds the steady yearly growth rate that turns a beginning value into an ending value over a number of years or between two dates. It also shows the absolute return and growth multiple, and can work the other way to project a future value from a given CAGR.

Compound annual growth rate (CAGR) answers a simple question: if something had grown at the same rate every year, what would that rate be? An investment that grew from 1 lakh to 2.5 lakh in seven years has an absolute return of 150%, but its CAGR is about 14% a year. Because it accounts for compounding and time, CAGR is the fairest way to compare investments, company revenues or user growth over different periods.

The tool applies CAGR = (ending value ÷ beginning value)^(1/years) − 1. You can enter the period as a number of years, including fractions, or as two dates, in which case it uses the exact number of days divided by 365.25. In the reverse mode it projects ending value = beginning value × (1 + CAGR)^years. CAGR suits a single starting amount; for regular deposits or withdrawals, XIRR is the right measure.

How to use CAGR Calculator

1. Choose CAGR from two values, or Ending value from a CAGR.
2. Enter the beginning value.
3. Enter the ending value, or the CAGR for the reverse mode.
4. Choose whether to enter the period as years or as start and end dates.
5. Read the CAGR or projected value, absolute return and growth multiple.
6. Check the smoothed growth path and download the yearly table if needed.

Tips for better results

• CAGR smooths out volatility; two investments with the same CAGR can have very different risk.
• For periods under one year CAGR annualises short-term gains and can look misleadingly high.
• When comparing mutual funds, use the CAGR for the same start and end dates.

Common use cases

• Measuring the annual return on a stock, fund or property held for several years.
• Reporting revenue or customer growth in a business plan.
• Comparing your portfolio’s growth with an index over the same dates.
• Projecting a value forward at an assumed growth rate.

Common mistakes to avoid

• Dividing the absolute return by the number of years, which ignores compounding.
• Using CAGR for an SIP or any series of cash flows.
• Comparing CAGRs calculated over different time periods.