ganak.appCAGR Calculator
Calculate compound annual growth rate (CAGR) for any investment. Switch between 4 modes: find CAGR, project end value, find starting value, or calculate years needed. Includes growth chart, year-by-year breakdown, and real-world examples for stocks, mutual funds, and business revenue.
Investment Summary
Start, end & total gain breakdown
Year-by-Year Breakdown
5-year growth projection
| Year | Value | Annual Gain | Total Gain |
|---|---|---|---|
| Start | $10,000 | — | — |
| Year 1 | $11,487 | +$1,487 | +$1,487 |
| Year 2 | $13,195 | +$1,708 | +$3,195 |
| Year 3 | $15,157 | +$1,962 | +$5,157 |
| Year 4 | $17,411 | +$2,254 | +$7,411 |
| Year 5 | $20,000 | +$2,589 | +$10,000 |
What is CAGR?
Compound Annual Growth Rate — the investor's standard metric
CAGR (Compound Annual Growth Rate) is the year-over-year growth rate of an investment assuming profits are reinvested at the end of each year. Unlike a simple average, CAGR accounts for compounding, giving a single smooth rate that accurately represents the growth path.
The CAGR Formula
CAGR = (EV / BV)^(1/n) − 1
EV = Ending Value · BV = Beginning Value · n = Years
For example, an investment that grows from $10,000 to $20,000 in 5 years has a CAGR of (2/1)^(1/5) − 1 = 14.87% per year.
CAGR vs Absolute Return vs Simple Average
Why CAGR is the most reliable performance metric
Annualized compounded growth
Comparing investments over different periods
Total % gain/loss regardless of time
Knowing total gain in a single holding
Mean of yearly % returns
Quick estimates only (misleading)
The Misleading Average Problem
A stock that gains 100% one year then loses 50% the next has a simple average of 25% — but you broke even. CAGR correctly shows 0%.
How to Use This Calculator
Four modes to answer every CAGR question
Inputs: Start value · End value · Period
“What annual return did my investment earn?”
Inputs: Start value · CAGR % · Period
“What will ₹1L be worth at 12% for 10 years?”
Inputs: End value · CAGR % · Period
“How much to invest to reach ₹50L at 15%?”
Inputs: Start value · End value · CAGR %
“How long to double my money at 10% CAGR?”
CAGR in Excel / Google Sheets
Formula method
=(B2/B1)^(1/B3)-1B1=start, B2=end, B3=years
RATE function
=RATE(n,0,-start,end)Format cell as Percentage
Real-World CAGR Examples
Historical CAGR across asset classes
| Asset | Start | End | Period | CAGR |
|---|---|---|---|---|
| S&P 500 (long-term) | $10,000 | $25,937 | 10 yrs | 10% |
| NASDAQ 100 (10-year) | $10,000 | $35,179 | 10 yrs | 13.4% |
| US Treasury Bond | $10,000 | $16,289 | 10 yrs | 5% |
| US Real Estate (avg) | $300,000 | $540,867 | 10 yrs | 6.1% |
| Bitcoin (5-year hist.) | $1,000 | $17,623 | 5 yrs | 77.2% |
* Historical returns are indicative only. Past performance is not a guarantee of future returns.
Years Needed to Double Your Money
Exact years to 2× your investment using log(2)/log(1+r) — lower bar = faster doubling
Common Mistakes When Calculating CAGR
Avoid these pitfalls for accurate results
Using simple average instead of CAGR
Adding up annual returns and dividing by years gives the arithmetic mean, not the compounded rate. Always use the geometric formula for investment return comparisons.
Confusing CAGR with absolute return
A 200% absolute return over 10 years equals only 11.6% CAGR. Always express returns on an annualized basis to make them comparable across different holding periods.
Applying CAGR to SIP investments
CAGR assumes a single lump sum at the start. For periodic investments (SIP, 401k), use XIRR instead — it correctly accounts for the timing of each cash flow.
Ignoring inflation and taxes
A 12% CAGR with 6% inflation is only ~5.7% in real terms. After capital gains tax, returns are further reduced. Always model post-tax, inflation-adjusted returns for long-term goals.
Frequently Asked Questions
Common questions about CAGR calculation and interpretation