Calculate the Compound Annual Growth Rate of any investment. Enter initial value, final value, and years for your annual growth rate instantly.
Enter the starting value of your investment at the beginning of the period.
Enter the ending value of your investment and the number of years it was held.
Instantly see the compound annual growth rate, total growth percentage, and absolute gain.
The ToolCentrix CAGR Calculator computes the Compound Annual Growth Rate of any investment — a single figure that represents the smoothed annual return as if the investment had grown at a constant rate every year. CAGR is one of the most widely used metrics in finance for comparing investment performance across different time periods and asset classes.
The CAGR formula: CAGR = ((Final Value ÷ Initial Value)^(1/n) − 1) × 100, where n is the number of years. An investment growing from ₹1,00,000 to ₹2,00,000 in 5 years has a CAGR of approximately 14.87% per year.
Why CAGR matters: Year-to-year investment returns are volatile. One year might return +30%, the next −10%. CAGR removes this noise and shows the effective annual rate that would produce the same final value from the same starting value. This makes it ideal for comparing mutual funds, stocks, businesses, and economic indicators over time.
CAGR vs absolute return: Absolute return tells you total gain as a percentage of the initial investment regardless of time. CAGR normalises this by time, making it more meaningful for longer investments. A 100% absolute return in 2 years (CAGR: 41.4%) is much better than in 10 years (CAGR: 7.18%).
Benchmarking investments: In India, the Nifty 50 has historically delivered a CAGR of around 12–13% over 10-year periods. If your equity mutual fund shows a CAGR below 12% over the same period, it has underperformed the index. Use this calculator to benchmark your portfolio against market indices.
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