CAGR Calculator: Compound Annual Growth Rate of Any Investment
Enter the starting value, the ending value and the number of years. The CAGR, absolute return and the working appear as you type.
- Nothing you type is stored
- Free
- No signup
CAGR
20.11%
- Absolute return
- 150%
- Gain
- ₹1,50,000
- Grew
- 2.5 ×
- Doubles in about
- 3.8 years
Show working
- CAGR = (End ÷ Start)^(1 ÷ Years) − 1
- = (250000 ÷ 100000)^(1 ÷ 5) − 1
- = 2.500000^0.200000 − 1 = 20.1124%
How to use
- Enter the starting value of the investment, sales or anything else.
- Enter the ending value.
- Enter the number of years; decimals like 3.5 work.
Good to know
CAGR = (ending value ÷ starting value)^(1 ÷ years) − 1. It is the steady yearly rate that would turn the start value into the end value, smoothing out the ups and downs in between.
CAGR is how mutual fund returns over more than a year, company revenue growth and property price growth are usually reported. ₹1 lakh becoming ₹2 lakh in 5 years is a CAGR of 14.87%.
CAGR works for a single investment with no money added or taken out in between. For SIPs or several transactions, use XIRR, which accounts for the dates of each cash flow.
Questions
What is the CAGR formula?
CAGR = (End ÷ Start)^(1 ÷ n) − 1, where n is the number of years.
What is the difference between CAGR and absolute return?
Absolute return is the total change in percent; CAGR spreads it over the years as a yearly compound rate.
Can I use CAGR for SIP returns?
No. Use XIRR for SIPs because money goes in at different dates.
What is a good CAGR?
It depends on the asset and risk. Compare with inflation and with a safe option such as a bank FD.
Is my data stored?
No. Everything is calculated on your device.