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CAGR Calculator - Calculate Compound Annual Growth Rate

Use this CAGR calculator to calculate the Compound Annual Growth Rate of your investment based on its initial value, final value, and time period. Easily estimate the smoothed annual growth rate, total gains, and year-wise projection of your investment.

₹1K₹1,00,000₹1Cr
₹1K₹2,50,000₹2Cr
1 yr5 years30 yrs
CAGR (Compound Annual Growth Rate) shows the smoothed annual rate at which an investment would have grown if it grew at a steady rate every year, ignoring actual year-to-year volatility.

How does the CAGR Calculator work?

This CAGR (Compound Annual Growth Rate) calculator estimates the annualized growth rate of an investment over a given time period using the formula CAGR = (Final Value / Initial Value)^(1/Years) − 1. It smooths out year-to-year volatility to show the equivalent steady annual growth rate, helping you compare returns across different investments like mutual funds, stocks, or fixed deposits.

CAGR Formula

CAGR = [(Final Value ÷ Initial Value) ^ (1 ÷ Number of Years)] − 1, expressed as a percentage. It assumes profits are reinvested at the end of each year and does not account for volatility during the period.