What is a CAGR calculator?
A CAGR (Compound Annual Growth Rate) calculator finds the smoothed yearly return that links a starting value to an ending value over a given period. You enter present value (PV), future value (FV), and tenure in years.
The tool shows absolute gain, total return percentage, and CAGR. Use it to express investment or business growth as a single annual rate—especially when comparing holdings of different lengths.
When is CAGR useful?
Total return alone does not account for time. CAGR spreads growth evenly across each year so you can compare a five-year mutual fund exit with a ten-year property sale.
- Measure how fast a lump-sum investment grew between two NAV or valuation points.
- Benchmark business revenue or asset growth over multiple years.
- Compare realized gains with a constant-rate projection from the lumpsum calculator.
How does this CAGR calculator work?
CAGR = (FV / PV)^(1/n) − 1, where n is the time period in years.
CAGR = (FV / PV)^(1/n) − 1
Where –
| FV | Future value |
|---|---|
| PV | Present value (initial investment) |
| n | Time period in years |
Total return = (FV − PV) / PV × 100
Worked example
Invest ₹1,00,000 (PV) and it grows to ₹10,00,000 (FV) after 5 years (n). CAGR = (10,00,000 / 1,00,000)^(1/5) − 1 ≈ 58.49%, or about 58.5% per year on a compounded basis. Total return is 900%—but CAGR is the figure you use for year-on-year comparison.
For net gain with amount invested and amount returned fields, see the <a href="/calculators/roi-calculator/">ROI calculator</a>.
How to use this CAGR calculator
Enter present value, future value, and time period in years. Sliders and number fields update results instantly.
What this calculator does not include
Interim cash flows, volatility, fees, and taxes are not modeled. CAGR assumes a single starting and ending value with steady compounded growth—a useful summary, not a replay of actual path-dependent returns.
Frequently asked questions
What is the difference between CAGR and ROI?
Total ROI is overall percentage gain on the original amount. CAGR is the equivalent constant annual rate over the full period—similar to annualized ROI when you know only start, end, and years.
Can CAGR be negative?
Yes. If future value is less than present value, absolute gain and CAGR are negative—the investment lost value on an annualized basis.
Does CAGR apply to SIP investments?
CAGR here is for a single lump sum from PV to FV. Regular monthly investments need XIRR or SIP tools because cash flows occur at different dates.