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CAGR Calculator

Compute the compound annual growth rate that turns a starting capital into an ending capital over a period.

Quick answer: The compound annual growth rate is the single yearly rate that, compounded each year, grows the starting capital into the ending capital over the given number of years. It smooths away the bumps of individual years into one representative rate. The tool raises the ratio of ending to starting capital to the power of one over the years and subtracts one.

Starting capital (₹)Ending capital (₹)Number of years

How to use it

Enter the capital you started with, the capital you finished with, and the number of years between them. The output is the compound annual growth rate as a percentage, plus the total growth over the whole period. CAGR assumes smooth compounding and says nothing about the volatility or drawdowns along the way.

Formula

CAGR = ( Ending ÷ Starting ) ^ ( 1 ÷ Years ) − 1

Multiply by 100 to express as a percentage. Years may be fractional.

Frequently asked questions

How is CAGR different from average return?

A simple average of yearly returns overstates growth because it ignores compounding and the fact that a loss needs a larger gain to recover. CAGR is the geometric rate that actually links start to end, so it is the honest smoothed figure.

Does CAGR show risk?

No. Two accounts can share the same CAGR while one rose steadily and the other swung through deep drawdowns. Always read CAGR alongside a drawdown or volatility measure.

Can CAGR be negative?

Yes. If the ending capital is below the starting capital, the growth rate is negative, reflecting a compounded annual loss over the period.

What if I add or withdraw money during the period?

Plain CAGR assumes no external cash flows. If you deposited or withdrew funds, use a money-weighted or time-weighted return instead, or the figure will confuse deposits with performance.

Can I use fractional years?

Yes. For 18 months enter 1.5. The exponent handles any positive number of years, so partial periods are fine.

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