CAGR Calculator
Find the compound annual growth rate (CAGR) of an investment using its initial value, final value, and time period.
CAGR
14.87%
Period
5 years
Initial Value
₹1,00,000
Final Value
₹2,00,000
CAGR is the annualised rate of return that would take your investment from its initial to its final value.
How it is calculated
CAGR = (Final Value / Initial Value)^(1 / Years) − 1
Initial Value and Final Value are your investment's starting and ending amounts in rupees, and Years is the investment period. Multiply the result by 100 to express it as a percentage.
Example
If an investment of ₹1,00,000 grows to ₹2,00,000 in 5 years, the CAGR is about 14.87% per year — the annualised growth rate of that journey.
Important notes
- Both values and the period should be greater than zero.
- CAGR smooths out year-to-year volatility.
- Past CAGR is not a promise of future returns.
Frequently asked questions
What is CAGR?
Compound Annual Growth Rate is the yearly rate at which an investment would need to grow to move from its initial value to its final value over a given period.
Is CAGR the same as my actual annual return each year?
No. CAGR is a smoothed, annualised figure. Your actual return each year may be higher or lower.
Can CAGR be negative?
Yes. If the final value is lower than the initial value, the CAGR is negative.
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CashBloom provides educational information and calculator estimates for general informational purposes. Results may differ from actual rates, taxes, fees, bank calculations or investment outcomes. Verify current information from official sources before making financial decisions.