CAGR Calculator
Enter what you started with, what it grew to, and how many years it took — the calculator finds the steady yearly growth rate.
Runs entirely in your browser — your numbers never leave this page.
How it works
CAGR (Compound Annual Growth Rate) answers: "at what steady yearly rate would this have grown?"
CAGR = (End ÷ Start)(1 ÷ years) − 1
- CAGR vs absolute return: doubling in 5 years is 100% absolute but only 14.9% CAGR — the yearly rate is the honest comparison across different timeframes.
- Same CAGR, different ride: CAGR hides volatility. A fund that went +40%, −20%, +40% has the same CAGR as one that went +14%, +14%, +14% — but very different stress.
- Not for SIPs: CAGR assumes one lump sum at the start. For staggered investments (monthly SIPs), use XIRR instead.
- Benchmarking: compare your portfolio's CAGR against the Nifty 50 (~12% long-term) and inflation (~6%) — beating inflation is the real goal.
- Negative CAGR is normal to see on short horizons — equity needs 5+ years for the rate to mean anything.
Frequently asked questions
How is CAGR calculated?
CAGR = (end ÷ start)^(1 ÷ years) − 1. Rs 1 lakh growing to Rs 2.5 lakh in 5 years = (2.5)^(0.2) − 1 ≈ 20.1% CAGR.
CAGR vs absolute returns — which matters?
CAGR, for comparisons. 100% absolute return means little without time: doubling in 3 years (26% CAGR) vs 10 years (7.2% CAGR) are completely different performances.
What is a good CAGR?
Indian equity has delivered ~12% long-term; 12–15% is excellent, 8–10% is solid for balanced portfolios. Anything consistently above inflation (~6%) is building real wealth.
Can CAGR be negative?
Yes — if the end value is below the start. Common on 1–3 year equity horizons; it is why equity needs a 5+ year horizon for the number to be meaningful.
CAGR vs XIRR — which should I use?
CAGR for lump-sum investments (one deposit, one withdrawal). XIRR for SIPs or any investment with multiple cash flows in and out.
Does CAGR account for dividends?
Only if you include them in the end value (reinvested). Price-only CAGR understates total return — use total-return figures when available.
Why does my fund show high CAGR but I earned less?
Probably timing: CAGR on the fund's NAV assumes you invested the lump sum at the start. Your personal return (XIRR) reflects when you actually invested.
Is CAGR the same as average annual return?
No — and CAGR is the honest one. +50% then −50% averages to 0% but leaves you down 25%; CAGR correctly shows −13.4%. Always use CAGR for multi-year performance.
How do taxes affect CAGR?
Reported CAGRs are pre-tax. Equity LTCG (12.5% above Rs 1.25L/year) shaves roughly 1–1.5 percentage points off a 12% CAGR over long horizons.
Can I use CAGR for property?
Yes — same formula. A flat bought at Rs 50L and sold at Rs 90L after 8 years = 7.6% CAGR, before costs. Include stamp duty and maintenance in the start value for honesty.