CAGR Calculator
CAGR (compound annual growth rate) is the single yearly rate at which an investment would have to grow, compounding every year, to go from its starting value to its ending value. It smooths out the ups and downs, which makes it easy to compare two investments held for different lengths of time.
CAGR Calculator
Example values are shown to start with. Change them to your own numbers. Everything is calculated in your browser.
Enter the beginning value, the ending value and the number of years. The calculator shows the CAGR and the total percentage growth. CAGR works for a single investment made once. For monthly investments such as a SIP, a measure like XIRR is more accurate.
Worked example
With the starting values below, the calculator gives the results in the second table.
| Beginning value | ₹1,00,000 |
|---|---|
| Ending value | ₹2,50,000 |
| Years | 5 |
| CAGR | 20.11% |
|---|---|
| Total growth | 150% |
How to use this calculator
- Enter the value at the start.
- Enter the value at the end.
- Enter the number of years between them.
- Read the CAGR and the total growth.
Formula
- Total growth = (Ending value ÷ Beginning value − 1) × 100.
- Years can be a decimal, for example 2.5.
Assumptions
- Growth is treated as steady, compounding once a year.
- There are no additions or withdrawals during the period.
Limitations
- CAGR hides how much the value moved in individual years, so two investments with the same CAGR can have very different risk.
- It is not suitable for investments made in several instalments.
Frequently asked questions
What is a good CAGR?
It depends on the type of investment and the period. Compare the CAGR with similar investments and with inflation instead of judging it alone.
Can CAGR be negative?
Yes. If the ending value is lower than the beginning value, the CAGR is negative.
Is CAGR the same as average annual return?
No. The simple average of yearly returns ignores compounding. CAGR accounts for it and is usually a more accurate measure.
Can I use CAGR for a SIP?
Not accurately, because money goes in at different times. Use a method such as XIRR for investments made in instalments.
Related calculators
- SIP CalculatorEstimate the maturity value of a monthly SIP investment.
- Lumpsum CalculatorGrowth of a one-time investment at a steady yearly return.
- Compound Interest CalculatorGrowth of savings with regular monthly contributions.
Sources and method
CAGR is the standard compound growth rate formula. See how our calculators work.
Results are estimates for planning only and are not financial, tax or legal advice. Rates, rules and your own circumstances can change the outcome. Read our disclaimer.