CAGR Calculator

How it's calculated

CAGR = (final value ÷ initial value)^1/years − 1.

What CAGR tells you

The Compound Annual Growth Rate (CAGR) is the steady yearly rate that would take an investment from its starting value to its ending value over a given time. It smooths out the ups and downs, so you can compare investments held for different periods.

For example, an investment that doubles from ₹1,00,000 to ₹2,00,000 in 6 years has a CAGR of about 12.25% a year. CAGR is a summary of the past, not a forecast, and it ignores the path the value took along the way.

Frequently asked questions

How do I calculate CAGR?

CAGR = (ending value ÷ starting value)^(1 ÷ years) − 1. Enter the two values and the number of years.

What is the difference between CAGR and absolute return?

Absolute return is the total gain over the whole period. CAGR converts it to a yearly rate so different periods can be compared.

Can CAGR be used for SIPs?

Not directly, because a SIP adds money at different times. Use XIRR-style measures for that.

How to use the CAGR Calculator

Enter initial value, final value, duration. The calculator updates as you type and shows CAGR, along with the figures behind it. It runs in your browser, so nothing you enter is sent anywhere. Use the Reset button to go back to the example values.