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CAGR Calculator

Calculate compound annual growth rate for any investment or revenue

CAGR
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Total Return
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Total Gain
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Initial Investment₹0
Final Value₹0
Total Gain₹0
Total Return0%
CAGR0%
Year-by-Year Growth
YearValueGrowthCumulative Return
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What is CAGR Calculator?

Calculate CAGR (Compound Annual Growth Rate) for investments, stocks, mutual funds, or business revenue. Free online CAGR calculator. Productivity tools to help you work smarter and faster. TekPulse's CAGR Calculator is completely free — no signup, no ads in results, and no data stored on our servers.

How to Use CAGR Calculator Online

  1. Enter the initial (beginning) value of your investment
  2. Enter the final (ending) value after the investment period
  3. Enter the number of years of the investment period
  4. View the Compound Annual Growth Rate (CAGR) as a percentage
  5. Use the reverse mode to calculate future value given a CAGR and time period

CAGR Calculator Formula & Calculation

CAGR = [(Final Value ÷ Initial Value)^(1 ÷ Years) − 1] × 100

CAGR (Compound Annual Growth Rate) answers: "what single constant annual growth rate, compounded every year, would take the initial value to the final value over the given number of years?" It smooths out year-to-year volatility into one representative annual rate, which is why it's commonly used to compare investments, business revenue, or stock performance across different time periods on an apples-to-apples basis.

The tool also shows Total Return (the simple overall percentage gain, with no compounding/time dimension) alongside CAGR, plus a year-by-year growth table that reconstructs what the value would look like at each intermediate year if it grew at exactly the computed CAGR every year.

Example: An investment grows from ₹1,00,000 to ₹2,50,000 over 5 years: CAGR = (2,50,000/1,00,000)^(1/5) − 1 = (2.5)^0.2 − 1 ≈ 20.11% per year, even though the Total Return over the full 5 years is 150%.

Key Factors That Affect Your Result

  1. CAGR vs Total Return — Total Return (150% in the example) tells you the overall gain; CAGR (≈20.11%) tells you the annualized rate — always compare investments using CAGR, not total return, when the holding periods differ.
  2. CAGR smooths volatility, it doesn't reflect it — A stock that went up 80% one year and down 20% the next can show the same CAGR as one that grew steadily each year; CAGR says nothing about risk or drawdowns along the way.
  3. Requires positive start and end values — The formula breaks down (undefined or misleading) if the initial or final value is zero or negative, which is why this calculator requires both values to be greater than zero.

Why Use TekPulse CAGR Calculator?

Compound Annual Growth Rate
Computes CAGR from an initial value, final value and holding period in years
Year-by-Year Growth Table
Breaks down the projected value, annual growth and cumulative return for every year
Instant Recalculation
Results and the growth table update live as you change any input — no submit button needed
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Frequently Asked Questions

CAGR (Compound Annual Growth Rate) is the rate at which an investment grows from its beginning value to its ending value, assuming the profits are reinvested each year. It smooths out year-to-year fluctuations to show a steady growth rate.

CAGR = (Ending Value / Beginning Value)^(1 / Number of Years) − 1. For example, if ₹1,00,000 grew to ₹2,00,000 in 5 years, CAGR = (2,00,000/1,00,000)^(1/5) − 1 = 14.87%.

For equity mutual funds, a CAGR of 12–18% over 10+ years is considered good. Fixed deposits offer 6–7% CAGR. Real estate historically delivers 8–12% in most Indian cities. Inflation runs at approximately 5–6% CAGR, so aim for returns above this.

Absolute return tells you the total growth (e.g., 100% return), while CAGR annualises it to account for the time period. A 100% absolute return over 2 years is a 41.4% CAGR, but the same return over 10 years is only 7.2% CAGR.

Yes — if an investment loses value over the period, the CAGR will be negative. For example, if ₹1,00,000 fell to ₹70,000 over 3 years, the CAGR is approximately −11.1%.

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