CAGR Calculator
CAGR (in percentage %):
Bigsun Technologies
Check out our products
ERP and business software built for growing Indian businesses — from core ERP and CRM to Financial Accounting (FAS) and Construction ERP.
- ERPEnterprise software
- CRMCustomer management
- Media ERPFor media businesses
- NBFC ERPFor lending companies
- Manufacturing ERPFor manufacturers
- FAS AccountingFinancial accounting
- Construction ERPConstruction & real estate
- ServicesOur services
- HISHospital information system
- All ProductsExplore everything
What is CAGR?
A Compound Annual Growth Rate (CAGR) calculator online is a financial tool used to measure the annual growth rate of an investment over a specific time period, assuming the investment has been compounding steadily. It helps investors understand how well their investment has grown year-over-year, factoring in compounding returns.
CAGR is especially useful for comparing the performance of different investments or projecting future value based on historical data. It provides a smoothed rate of return, removing volatility and short-term fluctuations.
How Does the CAGR Calculator Work?
The formula used by the CAGR calculator is
CAGR = [(Ending Value / Beginning Value)^(1 / n)] – 1
Where:
Beginning Value = Initial investment amount
Ending Value = Value of the investment at the end of the period
n = Number of years
For example, if your investment grew from ₹1,00,000 to ₹1,50,000 in 3 years:
CAGR = [(150000 / 100000)^(1/3)] – 1 ≈ 14.47%
By using a Compound Annual Growth Rate (CAGR) calculator online, you can instantly compute this without manual effort, helping you evaluate investment performance or make future projections more confidently.