Free CAGR Calculator Online — Compound Annual Growth Rate

How to use

The tool has four modes controlled by the Solve for selector at the top.

Mode 1 — Calculate CAGR (default)

1. Select CAGR in the Solve for row.
2. Enter Initial Value — the starting investment amount.
3. Enter Final Value — what the investment is worth at the end of the period.
4. Enter Years — the investment horizon (decimals supported: 2.5 = 30 months).
5. Click Calculate. The results panel shows CAGR%, Initial Value, Final Value, Years, Absolute Return%, and Total Gain.
6. Scroll down to the Year-by-Year Table to see projected values at each year end.

Mode 2 — Calculate Final Value

1. Select Final Value in the Solve for row.
2. Enter Initial Value, CAGR (%), and Years.
3. Click Calculate. The tool computes FV = Initial × (1 + CAGR)^Years.

Mode 3 — Calculate Initial Value

1. Select Initial Value in the Solve for row.
2. Enter Final Value, CAGR (%), and Years.
3. Click Calculate. The tool computes PV = Final ÷ (1 + CAGR)^Years — useful for finding how much you need to invest today to reach a target.

Mode 4 — Calculate Years

1. Select Years in the Solve for row.
2. Enter Initial Value, Final Value, and CAGR (%).
3. Click Calculate. The tool computes N = ln(FV ÷ PV) ÷ ln(1 + CAGR).

How it works

Formulas

CAGR   = (FV ÷ PV) ^ (1 ÷ N) − 1
FV     = PV × (1 + CAGR) ^ N
PV     = FV ÷ (1 + CAGR) ^ N
N      = ln(FV ÷ PV) ÷ ln(1 + CAGR)

• FV = Final Value
• PV = Initial (Present) Value
• N = Number of years
• CAGR = as a decimal (20.11% → 0.2011)

Absolute Return is calculated separately as:

Absolute Return = ((FV − PV) ÷ PV) × 100

This tells you the total percentage gain over the full period without any annualisation.

Year-by-Year table

The table runs from Year 0 (= Initial Value) to Year N (= Final Value). For non-integer N the last row is at Math.ceil(N). Each row shows:

• Value — PV × (1 + CAGR)^year
• Gain — cumulative gain from Year 0
• Annual Growth — the increment from the previous year (the same percentage of a growing base)

Worked example — Mode 1: CAGR

Calculation:

CAGR = (2,50,000 ÷ 1,00,000) ^ (1 ÷ 5) − 1
     = 2.5 ^ 0.2 − 1
     = 1.20113… − 1
     = 0.20113…
     = 20.11%

Absolute Return = (1,50,000 ÷ 1,00,000) × 100 = 150%

Year-by-Year Table (at 20.11% CAGR):

Notice how the annual gain in rupees increases each year — that is compounding in action.

Worked example — Mode 2: Final Value

Scenario: What will ₹5,00,000 grow to at 12% CAGR over 8 years?

FV = 5,00,000 × (1.12) ^ 8
   = 5,00,000 × 2.47596
   = ₹12,37,980

Worked example — Mode 3: Initial Value

Scenario: You want ₹50,00,000 in 15 years. You expect 14% CAGR. How much do you need to invest today?

PV = 50,00,000 ÷ (1.14) ^ 15
   = 50,00,000 ÷ 7.13794
   = ₹7,00,423

Worked example — Mode 4: Years

Scenario: How many years to double ₹1,00,000 at 12% CAGR?

N = ln(2,00,000 ÷ 1,00,000) ÷ ln(1.12)
  = ln(2) ÷ ln(1.12)
  = 0.69315 ÷ 0.11333
  = 6.12 years

This is consistent with the Rule of 72: 72 ÷ 12 = 6 years (approximate). The exact answer from logarithms is 6.12.

Second worked example — mutual fund NAV growth

A mid-cap mutual fund's NAV grew from ₹22.50 (January 2019) to ₹48.30 (January 2024) over 5 years.

Calculation:

CAGR = (48.30 ÷ 22.50) ^ (1 ÷ 5) − 1
     = 2.1467 ^ 0.2 − 1
     = 1.165 − 1
     = 16.50%

Absolute Return = (25.80 ÷ 22.50) × 100 = 114.67%

The fund more than doubled in 5 years. But a 114.67% absolute return sounds more impressive than it is without the time dimension — 16.5% CAGR is the number to use when comparing this fund against an FD yielding 7% or a different fund measured over a different period. SEBI requires fund houses to disclose performance as CAGR for periods over 1 year, which is why you see CAGR in every mutual fund fact sheet.

CAGR benchmarks for context

These are approximate historical figures for reference only — past performance is not indicative of future results.

CAGR vs IRR — when to use each

CAGR is the right measure when you have a single lump-sum investment: one start value, one end value, one time period. It cannot handle intermediate cash flows.

Use IRR instead when:

• You made additional investments during the period (SIP or top-ups)
• You received dividends, coupon payments, or partial withdrawals
• You are comparing a series of unequal annual cash flows

Example: If you invested ₹1,00,000 in January 2019 and added ₹50,000 in January 2021, the CAGR formula would give you a misleading rate because it only looks at initial and final values. IRR accounts for the timing and size of each cash flow and gives the true annualised return on every rupee invested.

The Year-by-Year table in this tool assumes a single initial amount growing at a constant CAGR — it is not a substitute for an IRR calculator if you have SIP or recurring investment data.

Tips for interpreting CAGR

• Compare over the same period. A 3-year CAGR and a 10-year CAGR for the same fund measure different things. Always specify the time horizon when comparing.
• CAGR smooths out volatility. An investment can have a good CAGR even if it fell sharply mid-period and recovered. Check the Year-by-Year table to understand the shape of the growth.
• Beware of short periods. A 300% CAGR over 1 year sounds impressive but has no predictive value for the next year. CAGR becomes more meaningful over 3+ years.
• Use Solve For Years with the Rule of 72. At r% CAGR, money doubles in approximately 72/r years. The exact answer from Mode 4 is ln(2) ÷ ln(1+r). The Rule of 72 is a quick mental check.
• Use CAGR alongside risk metrics. Standard deviation and maximum drawdown tell you how smooth the journey was — CAGR only tells you the destination.

Sources

• SEBI — Mutual Fund Performance Disclosure norms, Circular CIR/IMD/DF/21/2012
• AMFI — How to Read a Fund Fact Sheet
• Investopedia — Compound Annual Growth Rate (CAGR)

Last updated: October 2026