CAGR Calculator
Find the compound annual growth rate of any investment from its start value, end value and holding period.
Year-wise Growth at this CAGR
| Year | Value at Year End | Gain so far |
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Final Value Comparison
What ₹1,00,000 becomes over 5 years at different CAGRs
| CAGR | Initial Value | Final Value | Gain |
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How CAGR is calculated
CAGR (Compound Annual Growth Rate) is the smoothed annual rate at which an investment grows from its starting value to its ending value, assuming the gains are reinvested each year.
Why CAGR matters
CAGR lets you compare investments held for different time periods on a single annualised basis, unlike absolute return which ignores time.
It assumes steady year-on-year growth, smoothing out volatility so you see the underlying compounding rate rather than year-to-year swings.
Use CAGR to check whether a fund, stock or business beat inflation, an index or a fixed deposit over the same holding period.
Frequently asked questions
What is CAGR?
CAGR stands for Compound Annual Growth Rate. It is the constant annual rate of return that would take an investment from its initial value to its final value over a given number of years, assuming returns are compounded. It answers the question: "At what steady yearly rate did my money grow?"
What is the difference between CAGR and absolute return?
Absolute return is simply the total percentage gain over the entire period — (Final − Initial) / Initial × 100 — and ignores how long the money was invested. CAGR converts that total gain into a per-year rate. For example, doubling your money is a 100% absolute return whether it took 2 years or 10 years, but the CAGR is about 41% over 2 years versus only about 7% over 10 years.
What is the difference between CAGR and XIRR?
CAGR assumes a single lump-sum investment with one start date and one end date. XIRR (Extended Internal Rate of Return) handles multiple cash flows on different dates — such as monthly SIPs, additional purchases or partial withdrawals. Use CAGR for a one-time investment and XIRR when money goes in or out at irregular intervals.
Can CAGR be negative?
Yes. If the final value is lower than the initial value, the CAGR is negative, indicating the investment lost value at that average annual rate. For example, ₹1,00,000 falling to ₹80,000 over 2 years gives a CAGR of about −10.6%.
Is CAGR the same as the actual yearly return?
No. CAGR is a smoothed, hypothetical rate. Real investments rarely grow by exactly the same percentage every year — some years may be up 30% and others down 10%. CAGR represents the single steady rate that produces the same final value, so it hides the year-to-year volatility.