Calculating your CAGR is straightforward once you know the CAGR formula and what each input means. This guide explains the method in plain language, walks through a manual calculation, and gives worked examples you can follow — then you can do it instantly with the CAGR Calculator.
What is CAGR?
Find the compound annual growth rate between two values over time. The figure you are solving for here is the CAGR, expressed in percent.
The CAGR formula
This calculation combines several inputs through a multi-step method rather than a single one-line formula. Enter the values below and the calculator resolves each step in order. The inputs it needs are:
- Initial value — a money amount. Example: ₹1,00,000.
- Final value — a money amount. Example: ₹2,00,000.
- Start date — a calendar date. Example: 2019-06-01.
- End date — a calendar date. Example: 2024-06-01.
How to calculate it step by step
- Write down the initial value (for example, ₹1,00,000).
- Write down the final value (for example, ₹2,00,000).
- Note the start date (for example, 2019-06-01).
- Note the end date (for example, 2024-06-01).
- Apply the formula above to get your CAGR.
- Double-check the result with the CAGR Calculator.
Worked examples
Example 1
| Input / Output | Value |
|---|---|
| Initial value | ₹1,00,000 |
| Final value | ₹2,00,000 |
| Start date | 2019-06-01 |
| End date | 2024-06-01 |
| Duration | 5 years |
| CAGR | 14.86% |
| Absolute return | 100.00% |
With initial value of ₹1,00,000, final value of ₹2,00,000, start date of 2019-06-01 and end date of 2024-06-01, the CAGR works out to 14.86%.
Example 2
With initial value of ₹2,00,000, final value of ₹2,00,000, start date of 2019-06-01 and end date of 2024-06-01, the CAGR works out to 0.00%.
| Result | Value |
|---|---|
| Duration | 5 years |
| CAGR | 0.00% |
| Absolute return | 0.00% |
Example 3
With initial value of ₹50,000, final value of ₹2,00,000, start date of 2019-06-01 and end date of 2024-06-01, the CAGR works out to 31.94%.
| Result | Value |
|---|---|
| Duration | 5 years |
| CAGR | 31.94% |
| Absolute return | 300.00% |
Tips for an accurate result
- Keep your units consistent — mixing, say, months with years or grams with kilograms is the most common source of error.
- Round only at the very end. Rounding inputs early can shift the final answer noticeably.
- Re-run the numbers whenever an input changes, rather than estimating from an old result.
- Annual rates must be converted to the period you are calculating for (for example, divide an annual rate by 12 for a monthly figure).
Prefer not to do the maths by hand? — the CAGR Calculator does it instantly, for free, with the formula and a worked example built in.
Related calculators
Continue exploring finance calculators with these tools: SIP Calculator, EMI Calculator, FD Calculator, Effective Annual Rate (EAR) Calculator, RD Calculator.