CAGR Calculator
Your investment doubled in 5 years — but what was the yearly rate? CAGR smooths the journey into one steady annual growth rate. Free, private, no signup.
Your investment
Compound annual growth rate
-
Total growth-
Absolute gain-
CAGR vs absolute returns — know the difference
Absolute return = (final − initial) ÷ initial. ₹1 lakh → ₹2 lakh is a 100% absolute return — but over 5 years or 15 years? Without time, the number is meaningless.
CAGR = (final ÷ initial)1/years − 1. It answers: "what steady yearly rate would turn the start value into the end value?" ₹1 lakh → ₹2 lakh in 5 years is a 14.87% CAGR. The same doubling over 10 years is only 7.18%.
- CAGR hides volatility. A fund that went +40%, −30%, +40% has the same CAGR as one that rose 12% three years straight. CAGR describes the destination, not the ride.
- Use it to compare. CAGR puts every investment on a per-year footing — the fair way to compare a 3-year FD against a 7-year mutual fund.
- For SIPs, use XIRR. CAGR only works for a single lump sum in and out. With monthly investments at different times, XIRR (explained in our SIP calculator) is the right measure.
FAQs
Can CAGR be negative?
Yes — if the final value is lower than the initial value, CAGR is negative, showing the average yearly erosion.
Is CAGR the same as the average of yearly returns?
No. The arithmetic average overstates growth when returns swing. +50% then −50% averages to 0% but actually loses 25% — CAGR correctly shows −13.4% per year.
What is a good CAGR?
Context matters: 7–8% CAGR beats inflation comfortably in India; 12%+ over a decade is strong equity performance; anything above 15% sustained is exceptional. Compare against the relevant benchmark, not a fixed number.
Is my data sent anywhere?
No. Everything is computed in your browser; nothing leaves your device.
Disclaimer: Estimates for illustration, computed in your browser — no data leaves your device. CAGR smooths volatility and does not predict future returns.