What is a CAGR Calculator?
A CAGR calculator finds the Compound Annual Growth Rate of an investment — the steady yearly rate at which it grew from its starting value to its ending value. It is the fairest way to compare the performance of stocks, mutual funds, real estate or a company's revenue over different time periods.
Enter the initial value, final value and number of years to see the CAGR alongside the absolute return.
How to use the CAGR Calculator
- 1Enter the initial value of the investment.
- 2Enter the final value (current or selling value).
- 3Enter the duration in years — decimals like 2.5 are allowed.
- 4Read the CAGR, absolute return and how many times your money multiplied.
CAGR Calculation Formula
- n
- — Number of years the investment was held
Example: ₹1 lakh growing to ₹2 lakh in 5 years
| Absolute return | 100% |
|---|---|
| CAGR | 14.87% |
Doubling in 5 years sounds like 20% a year, but because returns compound, the true yearly growth rate is 14.87%.
CAGR vs absolute return vs XIRR
- Absolute return — total gain in %, ignoring time. Useful for holdings under a year.
- CAGR — yearly growth rate for a single lump-sum investment held over several years.
- XIRR — annualised return when you invest multiple times on different dates, such as a SIP.
Limitations of CAGR
CAGR shows a smooth growth rate and hides volatility: two investments with the same CAGR may have had very different ups and downs along the way. It also ignores any money added or withdrawn during the period. Use it alongside risk measures and the XIRR calculator for a complete picture.
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Results from this calculator are estimates based on the inputs and assumptions you enter. They are for information and education only and are not financial, tax or investment advice.