CAGR Calculator
(Compounded Annual Growth Rate)
Use this free CAGR Calculator to chart the growth of your investment or business. It helps you find the Compounded Annual Growth Rate, allowing you to assess performance over a specific duration and make informed financial decisions.
What is CAGR?
CAGR (Compounded Annual Growth Rate) is a reliable method to determine the average yearly growth rate of an investment over a specific period. This metric considers compounding, offering a more accurate reflection of growth performance compared to simple averages.
How to Calculate CAGR?
Calculating CAGR is simple. Follow these steps:
- Identify the starting value (initial value) of your investment.
- Identify the ending value (final value) after a specific duration.
- Note the total number of years.
- Apply the CAGR formula using compounding.
CAGR Formula
CAGR = (Ending Value / Beginning Value)^(1 / Number of Years) − 1
CAGR Example
Assume a business earns ₹1,00,000 in FY23, and grows to ₹1,50,000 in FY25.
Beginning Value = ₹1,00,000
Ending Value = ₹1,50,000
Duration = 3 years
CAGR ≈ 14.47%
Benefits of Using an Online CAGR Calculator
- Provides fast and accurate results
- User-friendly and efficient
- Eliminates manual calculation errors
- Helps compare different investments
- Simplifies financial planning