CGR Calculator (CAGR Calculator)
Find the average yearly growth rate of an investment, a stock or a business.
Enter Values
Result
CGR = (Final / Initial)^(1 / Years) - 1
🔍 You Can Also Visit More Tools Categories
What Is a CAGR Calculator?
CAGR (Compound Annual Growth Rate) is the steady yearly rate at which a value would have to grow to go from its starting value to its ending value over a period of time. A CAGR calculator finds this rate for you. You can use it for a mutual fund, a stock, your business revenue or any other value that changes over time.
How to Use the CAGR Calculator
- Enter the Initial Value, your starting amount.
- Enter the Final Value, your ending amount.
- Enter the Duration in years.
- Click Calculate CAGR to see the CAGR, total growth and total profit.
CAGR Formula
CAGR = (Ending Value / Beginning Value)1 / Years − 1
Example: If ₹10,000 grows to ₹20,000 in 5 years, CAGR = (20,000 / 10,000)1/5 − 1 = 14.87% per year.
What CAGR Does Not Tell You
- CAGR is a smooth average. Real investments rise and fall from year to year, and CAGR hides that ups and downs.
- The yearly breakdown in this tool assumes steady growth at the CAGR. It does not show actual yearly returns.
- CAGR is meant for a single starting amount and a single ending amount. For monthly investments such as an SIP, use the SIP Calculator.
- To see growth after inflation, compare your CAGR with the Inflation Calculator.
CAGR Examples
| Case | Start to end value | Years | CAGR |
|---|---|---|---|
| Investment | ₹1,00,000 to ₹1,80,000 | 3 | 21.64% |
| Stock | ₹500 to ₹800 | 4 | 12.47% |
| Business revenue | ₹50 lakh to ₹1.2 crore | 5 | 19.14% |
| Loss | ₹100 to ₹80 | 2 | −10.56% |
CAGR vs Absolute Return
Absolute return shows the total growth, but it ignores time. If ₹10,000 becomes ₹20,000, the absolute return is 100% whether it takes 5 years or 10 years. CAGR shows the difference.
| ₹10,000 to ₹20,000 | Absolute return | CAGR |
|---|---|---|
| In 5 years | 100% | 14.87% |
| In 10 years | 100% | 7.18% |
Why Use the WebToolsKit CAGR Calculator?
- Free and quick: No signup and no limit.
- Total growth and profit: See CAGR, total growth and total profit together.
- Private by design: The calculation runs in your browser and your values are not sent to our server.
Frequently Asked Questions
1. What is CAGR?
CAGR stands for Compound Annual Growth Rate. It is the steady yearly growth rate that takes a starting value to an ending value over a period of time.
2. What is the difference between CAGR and absolute return?
Absolute return shows total growth and ignores time. CAGR converts that growth into an average yearly rate, so you can compare investments held for different periods.
3. Can CAGR be negative?
Yes. If the ending value is lower than the starting value, CAGR is negative. For example, ₹100 falling to ₹80 in 2 years is a CAGR of about −10.56%.
4. Can I use CAGR for an SIP?
Not directly. CAGR assumes one starting amount and one ending amount. An SIP has many instalments, so use the SIP Calculator or an XIRR calculation instead.
5. What is a good CAGR?
There is no single good number. Compare the CAGR with similar investments, with inflation and with the risk you took.
6. Is this calculator free and private?
Yes. It is free, needs no signup and runs in your browser without sending your values to our server.