CAGR Calculator
Calculate Compound Annual Growth Rate (CAGR) for any investment. Compare stocks, mutual funds, and other assets with accurate annualised growth metrics.
Quick examples
Investment details
Starting amount or investment value
Current or ending investment value
Time period of investment
Note: CAGR smooths out volatility and shows the average annual growth rate. It does not reflect actual year-to-year fluctuations.
Compound Annual Growth Rate
0.00%
Your investment grew at 0.00% annually
Investment metrics
CAGR vs absolute returns
Average annual growth rate considering compounding
Total percentage gain over 10 years
Why the difference? CAGR is annualised (per year rate), while absolute returns show total growth. For 10 years at 0.00% CAGR = 0.00% total returns.
Year-by-year growth projection
| Year | Value | Annual Growth | Total Growth % |
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Reverse CAGR calculators
What will my investment grow to?
What CAGR do I need to reach my goal?
How to use the CAGR calculator
Enter three numbers: the starting value of your investment, the ending value, and the number of years between them. The calculator gives you CAGR, absolute returns, total gain, and a year-by-year projection table. You can also use the reverse mode — either to project a future value at a given growth rate, or to find what annual return you need to reach a target.
The preset buttons at the top load historical figures for Sensex, Nifty 50, gold, FD, and PPF — useful if you want to benchmark your own portfolio against these.
The CAGR formula explained
CAGR = (Ending Value / Beginning Value)^(1/Years) − 1. The exponent 1/Years is what converts total growth into an annualised rate. Without it, you would just have the growth multiple. The formula assumes the investment grew at the same rate every year — it does not reflect actual year-to-year volatility, which is why markets can show 12% CAGR over a decade while swinging 30% up or down in individual years.
Worked example
You invested ₹2 lakh in a mid-cap mutual fund in 2016 and its value is ₹6.5 lakh today (2026). That is 10 years. CAGR = (6,50,000 / 2,00,000)^(1/10) − 1 = 3.25^0.1 − 1 ≈ 12.5% per year. Absolute returns over the period are 225%. The CAGR of 12.5% is the useful figure for comparison — it tells you the fund beat the Nifty 50's historical 11% long-run average. If you had used the SIP route instead of a lump sum, XIRR would give a more accurate picture since each monthly instalment was invested at a different point in time.
CAGR vs absolute returns — why it matters
Absolute returns alone are misleading across different time horizons. A fund claiming "200% returns" sounds better than one claiming "100% returns," but if the first fund took 20 years and the second took 7 years, the second has a higher CAGR (10.4% vs 5.6%) and is the stronger performer. CAGR normalises returns into a per-year rate, which is what lets you compare a 3-year stock investment against a 15-year PPF holding on the same scale.
When CAGR does not tell the full story
Two investments with identical CAGR can have very different risk profiles. One might have grown steadily each year; the other might have dropped 40% before surging at the end. CAGR does not capture that difference — it only cares about start value, end value, and time. For SIPs or multiple staggered investments, XIRR is the correct metric. For the SIP version of this calculation, try the SIP calculator which handles monthly contributions properly. For a full explanation of when to use CAGR versus XIRR versus TWRR, the SIP complete guide covers the differences in plain language.
Frequently asked questions
What is the CAGR formula?
CAGR = (Ending Value / Beginning Value)^(1/Years) − 1. For ₹1 lakh growing to ₹2.5 lakh over 10 years: (2.5)^0.1 − 1 ≈ 9.6% per year.
What is a good CAGR for stock investments in India?
Nifty 50 has historically delivered roughly 11–12% CAGR over long periods. Above 15% over a decade is strong for equity. FDs and bonds typically sit at 6–8%. Anything above 20% sustained for 10+ years is exceptional.
What is the difference between CAGR and absolute returns?
Absolute returns measure total percentage gain over the entire period. CAGR converts that into a per-year rate. A doubling over 10 years is 100% absolute but only 7.18% CAGR. CAGR is more useful for comparing investments held over different durations.
When should I use XIRR instead of CAGR?
Use CAGR for a single lump-sum investment. Use XIRR whenever you made multiple investments at different times — such as monthly SIPs or staged stock purchases — because XIRR accounts for the timing of each cash flow.
Can CAGR be negative?
Yes. If the ending value is below the starting value, CAGR is negative. ₹1 lakh falling to ₹70,000 over 5 years gives a CAGR of about −6.9% per year.