CAGR Calculator

CAGR (compound annual growth rate) is the steady yearly rate that would take an investment from its starting value to its ending value over a given number of years. It smooths out the ups and downs in between, which makes it the fairest single number for comparing investments held for different periods.

Decimals are allowed: 3.5 means three and a half years.
Results update as you type.

CAGR

13.99%

average growth per year, compounded

Absolute return
150%₹1,50,000 on ₹1,00,000
Growth multiple
2.5×
At this rate money doubles in
5.3 years

About this calculator

Enter what the investment was worth at the start, what it is worth now, and how many years passed. The calculator gives the CAGR, the absolute return and how long money takes to double at that rate.

How to use it

  1. Enter the starting value.
  2. Enter the ending value.
  3. Enter the number of years between them.
  4. Read the CAGR and compare it with other investments.

The formula

CAGR = (end value ÷ start value)1 ÷ years − 1
end value
what the investment is worth at the end
start value
what it was worth at the start
years
the time between the two, in years

Worked example

₹1 lakh that grew to ₹2.5 lakh in 7 years

  1. 2,50,000 ÷ 1,00,000 = 2.5.
  2. 2.51 ÷ 7 = 1.1399.
  3. CAGR = 1.1399 − 1 = 13.99% a year. The absolute return is 150%.

What the result means

CAGR tells you what a steady yearly return would have produced the same result. The real path was probably uneven, with some years far above and some below.

The absolute return is simply the total gain as a percentage and ignores time. A 150% return over 7 years and over 15 years look the same in absolute terms but have very different CAGRs.

Assumptions

  • There were no deposits or withdrawals between the start and the end.
  • Any dividends or interest are included in the ending value.

Limitations

  • For SIPs or any investment with money added at different times, CAGR is not the right measure. Use XIRR, which accounts for the date of each cash flow.
  • CAGR does not show risk or how bumpy the ride was.
  • For periods under a year, CAGR annualises a short-term return and can look misleadingly large.

Frequently asked questions

Is CAGR the same as average annual return?

No. The simple average of yearly returns ignores compounding and usually overstates growth. CAGR is the rate that actually links the start and end values.

Can CAGR be negative?

Yes. If the ending value is lower than the starting value, CAGR is negative and shows the average yearly fall.

What is a good CAGR?

It depends on the asset and the risk. Compare it with what a safe option such as a fixed deposit or PPF paid over the same period.

For information only. This calculator gives estimates based on the figures you enter and the assumptions listed above. It is not financial advice. Actual amounts depend on the lender’s or institution’s terms, fees, rounding and rate changes. Please confirm with them before you decide.

Last reviewed on 1 October 2026. Found a mistake? Tell us.