What is CAGR and what does this calculator do?

CAGR (compound annual growth rate) is the single, constant yearly rate that would take a beginning value to an ending value over a set number of years. Enter the start value, end value, and years, and this tool returns the rate. It also works in reverse: project a future value, or solve for the years needed.

How is CAGR different from average annual return?

The simple average just divides total growth by the number of years, ignoring compounding, so it always overstates the real rate. For an investment that grew 65% over 5 years, the simple average is 13%/yr, but the true CAGR is 10.53%/yr. CAGR is the figure you should use when comparing investments.

How do you calculate CAGR over 5 years?

Use CAGR = (Ending ÷ Beginning)^(1 ÷ 5) − 1. For Rs 100,000 growing to Rs 165,000: (165000 ÷ 100000)^(1/5) − 1 = 1.65^0.2 − 1 = 0.1053, or 10.53% a year. The tool shows the year-by-year path so you can see it land exactly on Rs 165,000.

Can CAGR be negative?

Yes. If the ending value is lower than the beginning value, CAGR is negative — it measures an average annual decline. An investment that fell from Rs 200,000 to Rs 150,000 over 3 years has a CAGR of −9.14% a year. The calculator labels this as a decline rather than treating it as an error.

What is a good CAGR for an investment?

It depends on the asset and the risk. As a Sri Lankan benchmark, compare against a one-year fixed deposit (often around 8–10% nominal) and against inflation. A CAGR that beats both your FD rate and CCPI inflation is growing your wealth in real terms. Enter an inflation rate to see the real, inflation-adjusted CAGR.

What CAGR did the Colombo Stock Exchange (ASPI) deliver historically?

The ASPI's CAGR depends entirely on the start and end dates you pick, because index levels swing widely year to year. Rather than quote a single number that quickly goes stale, take the official year-end ASPI levels published by the CSE for your chosen window and enter them as the beginning and ending values here.

Does CAGR account for deposits or withdrawals during the period?

No. CAGR assumes a single lump sum and exactly two endpoints. If you add money regularly (a savings plan or recurring deposit), CAGR will misrepresent your return — use the compound interest or recurring deposit calculators instead, which model periodic contributions.

What is real (inflation-adjusted) CAGR?

Real CAGR strips out inflation to show growth in purchasing power, using the Fisher relation: real CAGR = (1 + CAGR) ÷ (1 + inflation) − 1. A 12% nominal CAGR with 6% inflation is only about 5.66% in real terms. Enter an inflation rate (CBSL publishes CCPI) and the tool computes it.

How long will it take my money to double?

At a positive CAGR, doubling time is ln(2) ÷ ln(1 + CAGR). At 12% that is about 6.12 years. The Rule of 72 (72 ÷ 12 = 6) is a close mental shortcut. The tool shows both the exact figure and the Rule-of-72 estimate side by side.

Finance · Investing

CAGR Calculator — Compound Annual Growth Rate

Find the compound annual growth rate between any two values, project a future value from a rate, or solve for the years it takes to get there. Shows the year-by-year path, real (inflation-adjusted) CAGR, and doubling time. No signup, sources cited below.

By Induwara Ashinsana— Executive Director, Ryzera TechnologiesUpdated Jun 12, 2026

Compound Annual Growth Ratelive · no signup

Formula cross-checked

Enter where the investment started and ended, and over how many years — get the annualised growth rate.

Currency

Display only — CAGR is currency-agnostic.

Beginning value

Starting amount or value.

Ending value

Value at the end of the period.

Number of years

Fractional years are fine (e.g. 2.5).

Inflation rate (optional)

Adds a real, inflation-adjusted CAGR.

Beginning

Years

CAGR (annual growth)

10.53%

Rs 100,000 → Rs 165,000

Total growth

+Rs 65,000

65% over 5 years

Simple average / yr

13%

Naive total ÷ years — overstates compounding

Money doubles in

6.92 years

Rule of 72: 6.83 years

Year-by-year path

Year	Start	Growth	End
1	Rs 100,000	+Rs 10,534	Rs 110,534
2	Rs 110,534	+Rs 11,644	Rs 122,178
3	Rs 122,178	+Rs 12,871	Rs 135,049
4	Rs 135,049	+Rs 14,226	Rs 149,275
5	Rs 149,275	+Rs 15,725	Rs 165,000

Cross-check passed — the compounded path lands on Rs 165,000.

CAGR uses the standard definition (E ÷ B)^(1 ÷ n) − 1 (CFA / corporate finance), cross-checked by forward simulation. Real CAGR uses the Fisher relation. Sources cited below the calculator · last verified 2026-06-12.

How it works

CAGR — the compound annual growth rate — is the constant yearly rate that smooths an investment's journey from a beginning value B to an ending value E over nyears. It is the standard metric for comparing investments of different durations because it answers one clean question: “what single annual rate, compounded, gets me from here to there?” The definition is universal across corporate finance and the CFA curriculum:

CAGR = (E ÷ B)^{(1 ÷ n)} − 1

This calculator runs that identity in three directions:

Find CAGR — given B, E, and n, it returns the rate directly from the formula above.
Project value — given a known CAGR g, it rearranges to E = B × (1 + g)ⁿ to forecast a future value.
Find years — given B, E, and g, it solves for time with n = ln(E ÷ B) ÷ ln(1 + g).

Two cross-checks back every answer. First, the engine computes CAGR a second way — through logarithms, exp(ln(E÷B)÷n) − 1 — and confirms it matches the power-based formula. Second, it walks the money forward year by year, multiplying by (1 + CAGR) each year, and verifies the final year lands exactly on the ending value. That is the table you see beneath the results: visible proof the single rate reproduces the whole path.

Because nominal growth can be eaten by inflation, the tool optionally reports the real CAGR using the Fisher relation, (1 + CAGR) ÷ (1 + inflation) − 1. Sri Lanka's inflation (CCPI) is published by the Central Bank of Sri Lanka; enter the rate that fits your period. The doubling-time strip shows the exact ln 2 ÷ ln(1 + CAGR) alongside the Rule-of-72 shortcut so you can sanity-check it in your head. Negative growth is fully supported — if the ending value is lower, CAGR comes back negative and is labelled a decline rather than an error.

Worked examples

5-year investment (Find CAGR)

Rs 100,000 → Rs 165,000 over 5 years

Formula: CAGR = (165,000 / 100,000)^(1/5) − 1
= 1.65^0.2 − 1 = exp(0.2 × ln 1.65) − 1
= exp(0.2 × 0.500775) − 1 = exp(0.100155) − 1
= 1.105343 − 1 = 0.105343 → CAGR = 10.53%
Cross-check: 100,000 × 1.105343^5 = 165,000 ✓
Simple average = 65% / 5 = 13.0%/yr — overstates the true 10.53%

Small-business revenue (Find CAGR)

Rs 12,000,000 (2021) → Rs 28,000,000 (2026), 5 years

Formula: CAGR = (28 / 12)^(1/5) − 1
= 2.33333^0.2 − 1 = exp(0.2 × 0.847298) − 1
= exp(0.169460) − 1 = 1.184670 − 1
= 0.184670 → CAGR = 18.47% a year
Cross-check: 12,000,000 × 1.184670^5 = 28,000,000 ✓

Reverse: how long to double? (Find years)

Double an investment at 12% CAGR

Formula: n = ln(2) / ln(1.12)
= 0.693147 / 0.113329
= 6.12 years
Cross-check: 1 × 1.12^6.12 = 2.00 ✓
Rule of 72: 72 / 12 = 6.0 years — a close mental estimate

A decline (negative CAGR)

Rs 200,000 → Rs 150,000 over 3 years

Formula: CAGR = (150,000 / 200,000)^(1/3) − 1
= 0.75^(1/3) − 1 = exp(ln 0.75 / 3) − 1
= exp(−0.287682 / 3) − 1 = exp(−0.095894) − 1
= 0.908556 − 1 = −0.091444 → CAGR = −9.14%
Cross-check: 200,000 × 0.908556^3 = 150,000 ✓

Frequently asked questions

Sources & references

The CAGR identity is pure arithmetic, not a jurisdiction-specific rate, so it needs no statutory table — only the algebra, which this page cross-checks by forward simulation and a second log-based formula. Methodology last reviewed on 2026-06-12.

Related tools

LiveFinance

Compound Interest

Project the future value of a deposit with periodic contributions, any compounding frequency, and an inflation adjustment. Standard FV formula, period-by-period simulation cross-check, ten currencies.

Open tool

LiveFinance

SL Gratuity Calculator

Calculate Sri Lanka gratuity payment under the Gratuity Act 1983 plus IRD terminal-benefits tax and net take-home. Covers both amount and tax. Free, no signup.

Open tool

LiveFinance

Sri Lanka VAT Calculator

Add or remove 18% Value Added Tax from any LKR amount, with a clear base / VAT / total breakdown and a copy-ready invoice line. Defaults to Sri Lanka's current standard rate and supports the older 8%, 12%, and 15% rates for reconciling historical invoices.

Open tool

Rate this tool

Be the first to rate

Comments & feedback

Spotted a bug or want an improvement? Tell us — our team reviews every comment, and good ideas get built. Comments are public and anonymous.

Found a bug, edge case, or want to suggest an improvement?

Email me at [email protected] — most fixes ship within 24 hours.