CAGR Calculator
Calculate compound annual growth rate, total return, growth multiple, inflation-adjusted growth, benchmark difference, and a constant-growth value path.
- compound annual growth rate
- annualized return
- investment growth rate
- revenue growth
- growth multiple
The investment, revenue, price, or metric value at the start.
The value at the end of the measurement period.
Optional rate used for a like-for-like comparison.
Optional rate used to estimate real, inflation-adjusted CAGR.
Projects the ending value forward if the calculated CAGR continued unchanged.
Status: initial
Results
Awaiting calculation
Growth rate and value journey
Compare nominal CAGR with the selected benchmark and inflation-adjusted rate, then see the start, end, and continuation values.
- Beginning value₹100,000.00
- Ending value₹250,000.00
- Continuation scenario₹625,000.00
Use CAGR correctly
- 1Use consistent endpoint values and count elapsed growth intervals, not displayed year labels.
- 2Compare CAGR with total return, the benchmark, inflation, and the actual year-by-year path.
- 3Use XIRR instead when deposits or withdrawals occur between the endpoints.
CAGR smooths the endpoints into one constant rate. It does not show volatility and should not be used for portfolios with intermediate deposits or withdrawals.
Convert start-to-finish growth into one annual rate
Compound annual growth rate shows the constant annual rate that would connect a positive beginning value to a positive ending value over a chosen period. Use it for investments, revenue, users, prices, market size, or any other consistently measured value.
Compare growth measured over different time spans
CAGR makes multi-year growth easier to compare by annualizing the start-to-end change with compounding. This calculator also shows total return, the growth multiple, an inflation-adjusted rate, a benchmark comparison, and the hypothetical smooth path implied by the result.
How CAGR is calculated
Divide the ending value by the beginning value, raise that growth multiple to the reciprocal of the number of years, and subtract one. Months are converted to fractional years. The formula uses only the endpoints, so it does not reveal volatility or correctly measure performance with intermediate cash flows.
Variable explanations
Understand what each input and result means before calculating.
Beginning value
The positive value at the start of the measurement period. Use consistent units and valuation treatment at both endpoints.
Ending value
The positive value at the end of the period. Include reinvested distributions when the performance figure is intended to represent total return.
Measurement period
The elapsed time between endpoints. Two calendar labels five years apart contain five growth intervals, not six observations.
Benchmark rate
An optional annual rate used to show the percentage-point gap and the value the beginning amount would reach at that constant rate.
Inflation rate
An optional average annual rate used to estimate real CAGR. Match the geography, currency, and period when possible.
Growth multiple
Ending value divided by beginning value. A 2.5× multiple means the ending value is 250% of the beginning value.
Reviewed by the Calculator.org.in Editorial Team
Formula behavior, validation cases, explanatory examples, and cited sources are checked before publication. This review supports educational accuracy and is not a substitute for qualified professional advice.
Last reviewed: 2026-08-09
Formula guide
See the calculation logic, variable definitions, and practical meaning.
Compound annual growth rate
CAGR = (Ending value ÷ Beginning value)^(1 ÷ Years) − 1
- Beginning and ending values must both be positive.
- Years must be greater than zero.
Multiply the decimal result by 100 to express CAGR as an annual percentage.
Total growth
Total growth = (Ending value ÷ Beginning value − 1) × 100
- This is the entire-period change, not an annualized rate.
Total growth and CAGR answer different questions and should not be substituted for one another.
Inflation-adjusted CAGR
Real CAGR = (1 + nominal CAGR) ÷ (1 + inflation rate) − 1
- Use a comparable average annual inflation rate.
This estimates annual growth in purchasing-power terms.
Continuation projection
Projected value = Ending value × (1 + CAGR)^additional years
- The projection assumes the historical CAGR continues unchanged.
This is a mathematical scenario, not a forecast or expected return.
Worked examples
Follow realistic inputs through the calculation step by step.
Worked example
Investment grows from ₹1 lakh to ₹2.5 lakh
- 1Enter ₹1,00,000 as the beginning value and ₹2,50,000 as the ending value.
- 2Enter 5 years.
- 3CAGR = (2.5)^(1/5) − 1 ≈ 20.11% per year; total growth is 150%.
Worked example
Revenue declines over three years
- 1Revenue falls from ₹80 lakh to ₹60 lakh over 3 years.
- 2Because both endpoint values remain positive, CAGR can represent the compounded decline.
- 3The result is approximately −9.14% per year.
Worked example
Use a period measured in months
- 1A value rises from ₹50,000 to ₹65,000 over 18 months.
- 2Select months and enter 18; the calculator converts this to 1.5 years.
- 3The resulting CAGR annualizes the full 18-month change.
Worked example
Compare nominal and real CAGR
- 1Suppose nominal CAGR is 12% and average inflation is 5%.
- 2Real CAGR = 1.12 ÷ 1.05 − 1.
- 3Purchasing-power growth is approximately 6.67% per year.
Common mistakes
Avoid these common input and interpretation errors.
Counting observations instead of intervals
Values recorded at the ends of 2021 and 2026 span five annual growth intervals, even though six year labels may appear in a table.
Using CAGR with deposits or withdrawals
CAGR assumes one beginning value grows to one ending value. Use money-weighted return or XIRR when intermediate cash flows occur.
Averaging yearly percentage returns
The arithmetic mean does not capture compounding. CAGR is a geometric endpoint rate.
Treating the smooth path as actual history
The year-by-year table is the constant-rate path implied by CAGR; real values may have moved very differently.
Ignoring dividends, distributions, fees, or taxes
Decide whether endpoints represent price return or total return and apply the same basis consistently.
Projecting CAGR as guaranteed future growth
A continuation projection assumes the past annualized rate persists and does not model risk, valuation changes, or market conditions.
Frequently asked questions
Quick answers to the questions users ask most often.
What does CAGR mean?
Is CAGR the same as annual return?
Can CAGR be negative?
Can I calculate CAGR for less than one year?
Does CAGR include compounding?
Does CAGR show volatility?
Can CAGR handle SIPs or recurring investments?
What is the difference between CAGR and total return?
Is inflation-adjusted CAGR a forecast?
References
Sources used to support the calculator guidance.
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Version history
A transparent record of calculator content updates.
- 1.0.0 · 2026-08-09
Initial independent release with year/month conversion, total and real growth, benchmark comparison, constant-rate path, continuation projection, and doubling or halving time.