Calculate the compound annual growth rate between a starting and ending value. Compare annualised growth while recognising that actual year-by-year returns can vary.
How to use the CAGR calculator
Enter the value of a single investment at the beginning and end of a period, together with elapsed years. CAGR converts that total change into an equivalent constant annual growth rate. Decimal years are supported for partial-year periods.
- Starting value
- Enter a positive initial value. Zero or negative starting values are outside this calculator’s scope.
- Ending value
- Enter a non-negative final value, including zero for a total loss.
- Period
- Enter elapsed years between 0.01 and 100. For example, 18 months is 1.5 years.
Select Calculate, review the result and its breakdown, then change one input at a time to compare scenarios.
Formula and calculation method
CAGR is the annual compound rate that would turn the starting value into the ending value over the entered period. It uses only the two endpoints. The illustrated intermediate values apply that constant rate; they are not actual historical balances. An ending value of zero gives −100%.
See the numbers in context
₹1,00,000 increasing to ₹2,00,000 over 5 years gives a CAGR of about 14.87%. The overall gain is ₹1,00,000, or 100%. The equivalent path reaches the same final value, but does not show the actual fluctuations between those dates.
Illustrative inputs · percentages rounded to two decimals; amounts rounded to rupeesWhat your result means
CAGR is an annualised rate, while total change measures the entire period. A negative CAGR indicates a lower ending value. Two investments with the same CAGR can have very different volatility and cash-flow timing.
Scenarios worth comparing
- Compare the same starting and ending amounts over different holding periods.
- Enter a lower final amount to see negative growth.
- Compare like-for-like periods and values that consistently include or exclude costs.
Assumptions and limitations
- No contributions, withdrawals or other cash flows occur between the endpoints.
- The value basis is consistent at both dates; taxes, fees and distributions are not added automatically.
- Fractional years use a year-based exponent, rather than a date-based day-count convention.
- The constant-growth chart does not measure volatility or predict future performance.
Frequently asked questions
Can I use CAGR for an SIP?
A SIP has contributions at multiple dates. A dated cash-flow method such as XIRR is normally needed to measure that investor’s annualised return.
Is CAGR the same as total return?
No. Total change covers the whole holding period. CAGR annualises the compound change over that period.
What does a zero ending value mean?
It produces a −100% CAGR in this model. Intermediate zero values are a mathematical illustration, not a claim about when the investment became worthless.
Educational estimates only. Verify inputs, applicable rules and product terms before making decisions. Read the disclaimer.