CAGR Calculator

Initial value₹

Final value₹

Duration of investment (in years)Yrs

The Compound Annual Growth Rate is

0%

What is a CAGR Calculator?

A CAGR (Compound Annual Growth Rate) calculator is a free online tool that helps you find out the average growth of your investment each year. To use it, enter the initial investment amount, the current value, and the period. The calculator then shows the compounded annual growth rate of that investment amount for that given period.

How to Use the YES SECURITIES CAGR Calculator?

Using our CAGR calculator is easy. Fill in the given three details:

Step 1: Enter the Initial or Starting value of your Investment
Step 2: Enter the Final or Current value of your investment
Step 3: Enter the holding Period or Duration of the Investment

Based on these details, the calculator applies the CAGR formula to display the average annual growth rate of your investment.

Formula to Calculate CAGR

The CAGR formula for calculating the return on investments is as follows:

CAGR = (FV / PV) 1 / n - 1.

It is a mathematical calculation that determines the CAGR of any company. The values represent the following.

Where:

FV = Future Value of the investment
PV = Present Value (initial investment)
n = Time period in years

Example:

If you make an initial investment of Rs. 1 lakh, that is the PV or Present Value. If the total investment increased to Rs. 10 lakh (i.e FV or Future Value) after 5 years (n), the CAGR of your investment will be:

0.5849 × 100 = 58.49% 0.5849 \ times 100 = 58.49 \ % 0.5849 × 100 = 58.49%

Thus, the CAGR percentage is CAGR multiplied by 100, or 58.49%

Here’s how the CAGR on an investment of Rs.1 Lakh for period ranging from 1 to 10 years:

Duration (Years)	Initial Value	Final Value	Final Value	CAGR (%)
1	₹1,00,000	₹10,00,000	9.000	900.0%
2	₹1,00,000	₹10,00,000	2.999	299.9%
3	₹1,00,000	₹10,00,000	1.999	199.9%
4	₹1,00,000	₹10,00,000	1.778	177.8%
5	₹1,00,000	₹10,00,000	0.589	58.9%
6	₹1,00,000	₹10,00,000	0.467	46.7%
7	₹1,00,000	₹10,00,000	0.370	37.0%
8	₹1,00,000	₹10,00,000	0.316	31.6%
9	₹1,00,000	₹10,00,000	0.278	27.8%
10	₹1,00,000	₹10,00,000	0.259	25.9%

Advantages of Using CAGR Calculator

Here are some key benefits of using the YES Securities CAGR calculator:

Instant Results: As soon as you enter the required details, the CAGR calculator gives you the estimated annual growth rate in percentage form instantly.
Easy to Use and Compare: The tool makes it easy to calculate and compare CAGR for different investments and the estimated growth of how each has performed over time.
Free to Access: The CAGR online calculator is completely free to use.

FAQs on CAGR Calculator

What does CAGR return mean?

CAGR (Compound Annual Growth Rate) shows how much an investment grows on average each year over a specific time, assuming returns are reinvested.

Does CAGR take investment risks into account?

No, CAGR only measures growth. It does not reflect market volatility or risks.

Is it better to calculate CAGR instead of IRR?

CAGR is simpler and useful for steady growth comparisons, while IRR considers cash inflows/outflows and is better for complex investments.

What is considered a good CAGR percentage?

A CAGR of 8–12% is generally considered healthy for equity investments, but it varies by asset class and risk profile.

Is CAGR the same as Rule of 72?

No, CAGR shows annualised growth, while the Rule of 72 estimates how long it takes for a fund to double at a given return rate.

What does 3-year CAGR mean?

It shows the average annual return of an investment over the past three years, smoothing out year-to-year fluctuations.

Is CAGR the same as absolute return?

No, CAGR shows the average growth per year, while absolute return is the total percentage increase or decrease over the full period. The CAGR calculator is useful when comparing investments over different time frames.