About CAGR Calculator
Find the CAGR (Compound Annual Growth Rate) of an investment from its starting and ending value, or switch to lumpsum mode to project what a one-time investment will grow to at an expected rate. CAGR is the smoothed yearly return that lets you compare investments held for different lengths of time. Everything runs in your browser.
How to Use
- Choose CAGR mode (you know the start and end value) or Lumpsum mode (you want to project a future value).
- In CAGR mode, enter the initial value, the final value, and the number of years.
- In Lumpsum mode, enter the amount, the expected annual return, and the number of years.
- Read the CAGR, total gain, and absolute return.
Why Use This Tool?
- Accurate — built on precise, well-tested mathematical formulas.
- Instant — all calculations happen client-side for zero latency.
- Private — no data is sent to any server; your information stays on your device.
- Free — no sign-up, no limits, no hidden costs.
Frequently Asked Questions
What is CAGR?
CAGR (Compound Annual Growth Rate) is the constant yearly rate at which an investment would have to grow to go from its starting value to its ending value over a period. It smooths out the ups and downs into a single 'per year' figure.
What is the CAGR formula?
CAGR = (Final value ÷ Initial value)^(1 ÷ years) − 1. For example, ₹1,00,000 growing to ₹2,00,000 in 5 years is (2,00,000 ÷ 1,00,000)^(1/5) − 1 = 14.87% per year.
What is the difference between CAGR and absolute return?
Absolute return is the total gain ÷ amount invested and ignores how long you stayed invested. CAGR converts that into a yearly rate, so a 100% absolute return over 5 years (14.87% CAGR) can be fairly compared with a 40% return over 2 years (18.32% CAGR).
What is the difference between CAGR and XIRR?
CAGR works for a single lumpsum with one start and one end value. XIRR handles many cash flows on different dates (like a SIP). For a single lumpsum held for a whole period, CAGR and XIRR give the same answer; for a SIP, use XIRR.
What is a lumpsum calculator?
A lumpsum calculator projects what a single one-time investment will grow to at an assumed annual return, using Future value = P × (1 + r)^years. Switch this tool to Lumpsum mode to use it that way.
How do I calculate CAGR online?
Enter the initial value, the final value, and the number of years in the calculator above — it applies CAGR = (Final ÷ Initial)^(1 ÷ years) − 1 and shows the annualised growth rate instantly, in your browser, with nothing to install.
Can I use CAGR for a lumpsum investment?
Yes — CAGR is the natural measure for a lumpsum, because it has a single starting value and a single ending value. For a lumpsum held for a whole number of years, CAGR and XIRR give the same result; for regular monthly investing, use the SIP calculator, and for cash flows on irregular dates, use XIRR.