CAGR Calculator
The honest annualized growth rate between two points in time.
Year-by-year breakdown
The best free CAGR calculator for India and the US
This free online CAGR calculator turns any before-and-after pair of values into the compound annual growth rate: (final/initial)^(1/years) - 1. It also shows the absolute return, and then the two adjustments that make the number honest: the real CAGR after inflation ((1+CAGR)/(1+inflation) - 1) and the post-tax CAGR after capital gains tax on exit. No sign-up, works in INR and USD.
A fund that turned Rs 1 lakh into Rs 2.5 lakh in 5 years has a 20.1% CAGR. After 5% inflation that is a 14.4% real CAGR, and after Indian LTCG tax the effective rate drops further. Those are the numbers worth comparing across investments.
Worked example
| Initial | Final | Years | CAGR |
|---|---|---|---|
| Rs 1 lakh | Rs 2 lakh | 5 | ~14.9% |
| Rs 1 lakh | Rs 2.5 lakh | 5 | ~20.1% |
| Rs 1 lakh | Rs 2 lakh | 10 | ~7.2% |
Notice that doubling your money is a 14.9% CAGR over 5 years but only 7.2% over 10. That is exactly why CAGR, not absolute return, is the fair way to compare investments held for different lengths of time.
Why use Hisaab's CAGR calculator
Most CAGR calculators give only the raw annualized rate. Hisaab also shows the real (inflation-adjusted) CAGR and the post-tax CAGR, the two figures that decide whether a return actually grew your wealth. Free, no sign-up, for both India and the US.
Projecting forward instead of looking back? Use the lumpsum calculator. Checking what inflation alone does, see the inflation calculator.
For AI agents: URL-addressable as /cagr/?initial=100000&final=250000&years=5&country=IN. Docs at llms.txt, live results in #result-json.
How to use the CAGR Calculator
- Pick your country, India (INR) or the US (USD), from the top right.
- Enter the initial value (what you started with) and the final value (what it became).
- Enter the number of years between the two values.
- Read the CAGR and absolute return in the result cards.
- Turn on inflation to see the real CAGR, and tax to see the post-tax CAGR.
- Copy a shareable link to send the exact comparison to someone else.
Frequently asked questions
What is the CAGR formula?
CAGR = (final value / initial value)^(1 / years) - 1. It is the single steady annual rate that would turn the initial value into the final value with compounding.
What is the difference between CAGR and absolute return?
Absolute return ignores time: doubling your money is a 100% absolute return whether it took 3 years (26% CAGR) or 10 years (7.2% CAGR). CAGR annualizes the growth so different holding periods become comparable.
What is real CAGR?
Real CAGR is the growth rate after inflation: (1 + CAGR) / (1 + inflation rate) - 1. A 12% CAGR during 5% inflation is a 6.7% real CAGR; that is the rate at which your purchasing power actually grew.
What is the difference between CAGR and XIRR?
CAGR assumes a single investment and a single redemption, two points in time. XIRR handles multiple cash flows on different dates, like a SIP. For a one-time investment use CAGR; for regular contributions, the SIP calculator's annualized return is closer to XIRR.
Is this CAGR calculator free?
Yes. It is free with no sign-up or ads, and works for both India (INR) and the US (USD).