How to use CAGR Calculator
The compound annual growth rate is the constant annual rate that would take a starting value to an ending value over a given duration. It smooths an uneven growth path into one comparable number.
CAGR is suitable when there are no intermediate cash flows. If you deposit or withdraw money during the period, this two-value calculation does not measure your investment return correctly. An ending value below the starting value produces a negative CAGR.
The formula
A worked example
Starting value (₹): 100000 · Ending value (₹): 150000 · Duration (years): 5
Compound annual growth rate: 8.44717712%
CAGR smooths the path between two values. It does not account for deposits or withdrawals between them.
Questions about this calculation
Can CAGR be negative?
Yes. If the ending value is smaller than the starting value, the annualised growth rate is negative.
Can I use this for SIP returns?
Not as a return measure for repeating cash flows. SIP contributions need a cash-flow-aware return calculation.
Formula checks: 2026-10-08. Assumptions & corrections.