Compute compound annual growth rate between two values
CAGR Calculator is a comprehensive financial calculator designed to help you compute compound annual growth rate between two values. Planning finances requires absolute precision; this calculator provides instant accurate projections for EMIs, compounding, loans, and investment portfolio returns.
CAGR = (ending value / beginning value)^(1 / years) - 1. An investment growing from ₹1,00,000 to ₹2,50,000 in 5 years has 2.5^(0.2) - 1, which is about 20.11% a year. Enter both values and the years in the calculator.
Absolute return is the total percentage gain: (end - begin) / begin. In the example above it is 150%. CAGR converts that into a smoothed yearly rate, 20.11%. CAGR lets you compare investments held for different lengths of time.
No. A simple average adds yearly returns and divides by the years, ignoring compounding. CAGR is the single constant rate that would grow the starting value to the ending value. It is usually lower than the simple average when returns are volatile.
CAGR needs a beginning value, an ending value and a number of years that are all above zero, because it takes a ratio and a fractional power. A zero or negative value has no meaningful CAGR, so the tool asks you to correct it.
Not accurately. CAGR assumes a single starting amount and no additions or withdrawals in between. For regular investments such as SIPs, a return measure that accounts for the timing of each cash flow, like XIRR, is more appropriate.
No. CAGR only reflects the start and end values, hiding the ups and downs in between. Two investments can share a CAGR of 12% while one fell sharply along the way. Past CAGR also does not guarantee future returns.
No. Toolskyt operates under a zero-server policy. All calculations, data formatting, and file exports are executed locally on your machine.
No, this tool is 100% free. There are no limits, sign-ups, subscriptions, or hidden charges required.
A reducing interest rate means interest is charged only on the remaining outstanding principal balance at the end of each period, rather than the initial loan amount.