CAGR Calculator
An investment that grows from ₹1 lakh to ₹2.5 lakh in 5 years has a CAGR of 20.11% a year; doubling in 5 years is 14.87%.
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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.
How the cagr calculation works
CAGR = (Final value ÷ Initial value)^(1 ÷ years) − 1
Example
An investment that grew from ₹1,00,000 to ₹2,50,000 in 5 years has a CAGR of 20.11%.
CAGR Calculator scenarios
| Final value | Absolute return | CAGR over 3 years | CAGR over 5 years | CAGR over 10 years |
|---|---|---|---|---|
| ₹1.50 lakh | 50% | 14.47% | 8.45% | 4.14% |
| ₹2.00 lakh | 100% | 25.99% | 14.87% | 7.18% |
| ₹3.00 lakh | 200% | 44.22% | 24.57% | 11.61% |
| ₹5.00 lakh | 400% | 71.00% | 37.97% | 17.46% |
| ₹10.00 lakh | 900% | 115.44% | 58.49% | 25.89% |
What changes the result
- The period: the same absolute gain means a much lower CAGR when spread over more years.
- Start and end dates — CAGR only uses two points and ignores the ups and downs in between.
- Cash flows: CAGR suits a single investment; for SIPs or multiple deposits, use XIRR.
- Dividends: include them in the final value for a total-return CAGR.
How to use this calculator
- Enter the starting value of the investment.
- Enter the ending value.
- Enter the number of years between the two values.
- Read the CAGR and the absolute return.
CAGR Calculator FAQs
CAGR vs absolute return?
Absolute return is the total gain as a percentage. CAGR spreads that gain evenly across the years, so investments held for different periods can be compared.
CAGR vs XIRR — which should I use?
Use CAGR for one investment with a single start and end value. Use XIRR when money goes in or comes out on several dates, as with SIPs or partial withdrawals.
Can CAGR be negative?
Yes. If the final value is lower than the starting value, CAGR is negative and shows the average yearly loss.
Results are estimates for planning only and are not financial, tax or investment advice. Check figures with your bank, fund house or tax adviser before acting on them.