CAGR Calculator
Calculate the Compound Annual Growth Rate of your investments and track performance
CAGR Calculation Examples
Stock Investment
Initial Value: ₹1,00,000
Final Value: ₹2,50,000
Period: 5 years
CAGR: 20.11%
Shows strong market performance
Real Estate Growth
Initial Value: ₹50,00,000
Final Value: ₹95,00,000
Period: 8 years
CAGR: 8.37%
Typical property appreciation
Business Growth
Initial Value: ₹10,00,000
Final Value: ₹40,00,000
Period: 3 years
CAGR: 58.74%
High-growth startup scenario
CAGR Calculation Formulas
CAGR Formula
CAGR = (FV/IV)^(1/n) - 1
Where:
FV = Final Value
IV = Initial Value
n = Number of Years
Real CAGR (Inflation Adjusted)
Real CAGR = (1 + CAGR)/(1 + i) - 1
Where:
CAGR = Nominal CAGR
i = Inflation Rate
Total Growth Rate
Growth = (FV - IV)/IV × 100
Where:
FV = Final Value
IV = Initial Value
Benefits & Features
Our CAGR calculator provides valuable insights for investment performance analysis:
Performance Analysis
- Annualized return calculation
- Investment growth tracking
- Performance comparison
- Historical analysis
- Trend identification
Investment Insights
- Portfolio evaluation
- Asset comparison
- Risk assessment
- Return benchmarking
- Investment strategy review
Decision Support
- Investment selection
- Portfolio rebalancing
- Goal progress tracking
- Performance reporting
- Strategy optimization
Frequently Asked Questions
What is CAGR?
CAGR (Compound Annual Growth Rate) is:
- A measure of annual growth rate over time
- Accounts for compounding effects
- Smooths out investment returns
- Better than simple average returns
- Industry standard for performance comparison
When to use CAGR?
CAGR is useful for:
- Comparing investment options
- Analyzing portfolio performance
- Business growth analysis
- Market trend evaluation
- Long-term planning
CAGR vs Simple Growth Rate
Key differences include:
- CAGR considers compounding
- More accurate for long periods
- Accounts for time value
- Industry standard metric
- Better for comparison