CAGR Calculator — Compound Annual Growth Rate Made Clear
Calculate CAGR from start value, end value, and years. Compare investment returns, business growth, and revenue trajectories on an equal footing.
CAGR is the great equalizer in performance comparisons. It converts any growth — whether it happened smoothly or in wild swings — into a single annual percentage. A mutual fund, a startup's revenue, a stock price, your savings: all can be compared on the same terms with CAGR. The CalcHub CAGR Calculator gives you the number in seconds.
The Formula
CAGR = (End Value / Start Value)^(1/Years) − 1Express as a percentage by multiplying by 100.
A startup with ₹30L revenue in Year 1 and ₹2.7Cr revenue in Year 5:
CAGR = (₹2.7Cr / ₹30L)^(1/4) − 1 = (9)^0.25 − 1 = 1.732 − 1 = 73.2% CAGR
Note: 5 years from Year 1 to Year 5 is 4 periods of growth, so use n=4.
CAGR vs Average Annual Growth
These sound similar but give very different answers for volatile growth:
| Year | Revenue | YoY Growth |
|---|---|---|
| 1 | ₹10L | — |
| 2 | ₹20L | +100% |
| 3 | ₹12L | −40% |
| 4 | ₹30L | +150% |
The average growth rate is deeply misleading here. CAGR reflects the actual compounding reality: start with ₹10L, end with ₹30L in 3 years. That's 44.2% compounded annually — not 70%.
Real-World CAGR Benchmarks
| Asset / Context | Typical 10-year CAGR |
|---|---|
| Nifty 50 (historical) | 12–14% |
| Nifty Midcap 100 | 15–18% |
| Gold (INR) | 10–12% |
| Indian real estate (metro) | 8–12% |
| Top SaaS companies | 30–60% |
| Fixed deposit | 6–7% |
How to Use the Calculator
- Enter starting value (revenue, portfolio value, user count, etc.)
- Enter ending value
- Enter number of years (or number of periods)
- Get CAGR as a percentage, total absolute growth, and total percentage growth
Using CAGR to Project Future Values
Once you have a CAGR, you can project forward:
Future Value = Present Value × (1 + CAGR)^YearsA company at ₹5Cr ARR growing at 60% CAGR:
- Year 1: ₹8Cr
- Year 2: ₹12.8Cr
- Year 3: ₹20.5Cr
- Year 5: ₹52.4Cr
These projections are only as reliable as the assumption that past CAGR continues — which at high growth rates, it eventually doesn't. Model CAGR deceleration in long-range forecasts.
Reverse CAGR: What Growth Rate Do You Need?
Want to grow from ₹1Cr to ₹5Cr in 4 years?
Required CAGR = (5/1)^(1/4) − 1 = 5^0.25 − 1 = 49.5%
Is that achievable? That question is strategy. CAGR just tells you the math.
Can CAGR be negative?
Yes. If your end value is less than your starting value, CAGR will be negative — it represents annual decline. A portfolio falling from ₹10L to ₹6L over 5 years has a CAGR of (0.6)^0.2 − 1 = −9.7% annually.
How many years should I use for a meaningful CAGR?
At least 3–5 years for business performance. 1-year CAGR is just last year's growth rate; it's too short to be meaningful as a trend indicator. For investment benchmarking, 10-year CAGR is standard because it smooths multiple market cycles. For startups, 3-year CAGR shows whether early growth is sustaining.
What's the difference between CAGR and XIRR?
CAGR works with a starting value and an ending value over uniform time periods. XIRR (Extended IRR) handles irregular cash flows at irregular dates — better for SIPs with variable amounts, or business projects with non-annual cash flows. For simple start-to-end value comparisons, CAGR is sufficient.