CAGR Calculator

What is the CAGR calculator?

CAGR stands for Compound Annual Growth Rate. Calcihub’s CAGR Calculator tells about the average yearly growth rate of an investment, assuming it grew at a steady pace even if the actual returns bounced around year to year. It helps investors compare mutual funds, stocks, and business growth in a simple way. If a fund gave 200% returns over 10 years, CAGR tells you that's approximately 11.6% per year. CalciHub's CAGR calculator helps to calculate CAGR from start and end values, or to find what a future value will be at provided CAGR.

How Does CAGR Calculator Work?

CAGR shows growth as one average yearly rate. It doesn’t mean growth happens at the same rate every year. It’s just a way to measure the overall change between two points in time.

CAGR = (End Value / Start Value)^(1/n) – 1

End Value = Current or final value of the investment

Start Value = Original or beginning value

n = Number of years

How to Use CalciHub's CAGR Calculator

1. Enter the initial value (what you started with).

2. Enter the final value (what it's worth now or at the end).

3. Enter the number of years between the two values.

4. Click Calculate to get the CAGR percentage.

Tip: CAGR makes it easier to compare different investments. A fund that doubles in 5 years and another that triples in 8 years may look very different, but their annual growth rates are almost similar. CAGR helps you see that clearly.

A Quick Example

Sneha invested ₹2 lakh in a Nifty 50 index fund through her Zerodha account in January 2019. By January 2024 (5 years later), her investment grew to ₹4.2 lakh.

Initial value: ₹2,00,000

Final value: ₹4,20,000

Period: 5 years

CAGR: 16.02% per annum

Sneha's investment more than doubled, and the CAGR of 16% tells her exactly how this fund performed annually. This makes it easier to compare it with other funds or benchmarks.

Frequently Asked Questions