CAGR Calculator
Compound annual growth rate of any investment
Year-wise value at this CAGR
| Year | Value | Gain so far |
|---|---|---|
| Start | ₹1,00,000 | ₹0 |
| 1 | ₹1,13,985 | ₹13,985 |
| 2 | ₹1,29,926 | ₹29,926 |
| 3 | ₹1,48,097 | ₹48,097 |
| 4 | ₹1,68,808 | ₹68,808 |
| 5 | ₹1,92,417 | ₹92,417 |
| 6 | ₹2,19,327 | ₹1,19,327 |
| 7 | ₹2,50,000 | ₹1,50,000 |
A CAGR is a smoothed rate. The real investment will have moved up and down along the way; this table shows the steady path that ends at the same value.
Understand the result
About the CAGR Calculator
What is CAGR?
CAGR — compound annual growth rate — is the steady yearly rate at which an investment would have grown from its starting value to its ending value. It smooths out the ups and downs along the way into one comparable number, which is why fund factsheets, company reports and analysts use it.
This CAGR calculator finds the CAGR from a starting and ending value over any number of years, or works the other way — projecting a future value from a CAGR — and shows the absolute return and the inflation-adjusted (real) CAGR.
How this calculator works
CAGR — compound annual growth rate — is the single steady yearly rate that would take a starting value to an ending value over a given time. It turns an uneven journey (up 30% one year, down 10% the next) into one comparable number.
That is why CAGR is the standard way to compare mutual funds, stocks, property and business revenue over different periods. Absolute return tells you how much you made in total; CAGR tells you how fast.
Switch to “Future value” to run it the other way: start from an amount and a rate, and see what it grows to.
Formula
CAGR = (Final ÷ Initial)^(1 ÷ years) − 1 Future value = Initial × (1 + CAGR)^years Doubling time = ln 2 ÷ ln(1 + CAGR) ≈ 72 ÷ CAGR%
Worked example
- An investment of ₹1,00,000 is worth ₹2,50,000 after 7 years.
- CAGR = (2,50,000 ÷ 1,00,000)^(1/7) − 1 = 2.5^0.1429 − 1 ≈ 13.99% a year.
- The absolute return is 150%, but spread over seven years the money grew about 14% a year.
CAGR needed to double or triple your money
| Goal | In 5 years | In 10 years | In 15 years |
|---|---|---|---|
| Double (2×) | 14.87% | 7.18% | 4.73% |
| Triple (3×) | 24.57% | 11.61% | 7.60% |
A useful check on claims of quick riches: doubling money in five years needs almost 15% a year, every year. Doubling in ten needs only about 7.2%.
CAGR vs average annual return
An average of yearly returns can be misleading. An investment that rises 50% one year and falls 50% the next has an average return of 0%, but you have actually lost money: ₹100 becomes ₹150, then ₹75. Its CAGR is about −13.4% a year. CAGR reflects what really happened to your money; a simple average does not.
Assumptions & important notes
What this calculator assumes
- No money was added or withdrawn in between. For SIPs or irregular cash flows the right measure is XIRR, not CAGR.
- The result is a smoothed average; it says nothing about how volatile the path was.
Important notes
- For periods under a year, CAGR annualises a short-term return and can look misleadingly large. Absolute return is more honest there.
- Compare CAGRs only over the same period — a fund’s 3-year and 10-year CAGRs describe very different market conditions.
Frequently asked questions
What is the difference between CAGR and absolute return?
Absolute return is the total percentage gain regardless of time. CAGR spreads that gain over the years it took. Doubling your money is a 100% absolute return, but a 14.9% CAGR over 5 years and only a 7.2% CAGR over 10.
What is a good CAGR?
It depends on the asset and the risk. Beating inflation (around 5–6% in India) is the minimum. Fixed deposits give roughly 6.5–7.5%, and diversified equity funds have historically delivered around 11–13% over long periods, with no guarantee.
Can CAGR be used for SIP returns?
Not directly. A SIP invests at many dates, so each instalment has a different holding period. Use XIRR for SIP returns, or the Mutual Fund calculator to project them.
Is CAGR the same as average annual return?
No. The arithmetic average of yearly returns overstates growth whenever returns vary. CAGR is the geometric average — the constant rate that produces the same end value — and is the right measure of actual growth.
How do I calculate CAGR in Excel?
Use =(End/Start)^(1/Years)-1, or the RRI function: =RRI(years, start, end).
PaiseWise runs entirely in your browser — the figures you enter are never sent anywhere. Results are estimates for planning only, not financial, tax or investment advice.