Cubestack

CAGR Calculator

Free CAGR calculator — find the compound annual growth rate between two values, the future value at a given CAGR, or the growth rate you need to hit a target.

CAGR

14.87%

Ending value
₹2,00,000
Absolute return
100%
Gain
₹1,00,000
Period
5 years

Formula

(₹2,00,000 ÷ ₹1,00,000)1 ÷ 5 − 1 = 14.87%

CAGR = (ending value ÷ starting value)1 ÷ years − 1. Extra months are counted as a fraction of a year (months ÷ 12). Future value = starting value × (1 + CAGR)years. Absolute return = (ending value − starting value) ÷ starting value, with no adjustment for time.

CAGR is a smoothed yearly rate. It treats the growth as if it were steady and ignores money added or taken out in between, so it does not suit SIPs or regular deposits. Past growth does not tell you what will happen next.

This is a calculator only and not financial advice.

What is the CAGR Calculator?

CAGR (compound annual growth rate) is the steady yearly rate at which a value would have to grow to go from its starting figure to its ending figure. This calculator works it out, and can also run it in reverse: the future value at a given CAGR, or the CAGR you need to reach a target.

Choose what you want to find, enter the amounts and the period in years and months, and the result appears straight away. Absolute return, the gain and the formula with your numbers are shown next to the result.

How to use it

  1. 1

    Pick a mode

    Choose CAGR, Future value or Required CAGR.

  2. 2

    Enter the amounts

    Type the starting value and the ending value, target or growth rate.

  3. 3

    Enter the period

    Add years and any extra months (0 to 11).

  4. 4

    Read the result

    Check the CAGR or value, absolute return and gain.

Features

  • Three modes

    Find the CAGR, the future value at a given CAGR, or the yearly growth needed to reach a target.

  • Years and months

    Part years are counted as months ÷ 12, so 3 years 6 months is 3.5 years.

  • Absolute return

    See the plain percentage gain next to the yearly rate.

  • Formula shown

    Your own numbers are put into the formula so you can check the working.

  • Negative growth

    If the ending value is lower than the start, the CAGR is shown as a negative rate.

Popular uses

  • Mutual fund and stock returns

    Turn a lump sum's start and end value into a yearly rate.

  • Comparing investments

    Put investments held for different lengths of time on the same yearly basis.

  • Setting a goal

    See what yearly growth you need to turn today's amount into a target.

  • Business growth

    Work out the yearly growth in revenue, users or profit over several years.

Frequently asked questions

What is the CAGR formula?

CAGR = (ending value ÷ starting value)^(1 ÷ years) − 1. For example, ₹1,00,000 growing to ₹2,00,000 in 5 years is a CAGR of about 14.87%.

What is the difference between CAGR and absolute return?

Absolute return is the total percentage gain, with no regard to time. CAGR spreads that gain into a yearly rate, so a 100% gain over 5 years is a 14.87% CAGR.

Can I use CAGR for SIP returns?

Not really. CAGR assumes a single amount invested at the start. For regular investments like SIPs, XIRR is the better measure.

How are months handled?

Extra months are converted to a fraction of a year, so 2 years 3 months is 2.25 years.

Does a high past CAGR mean high future returns?

No. CAGR describes past growth as if it were smooth. Real returns go up and down, and the past does not predict the future.

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