How to use the CAGR Calculator
- Choose whether to find the CAGR or a future value.
- Enter the starting value and either the ending value or the CAGR.
- Enter the number of years to see the result.
About this tool
CAGR is the steady yearly growth rate that would take an investment from its starting value to its ending value. CAGR = (ending value ÷ starting value)1 ÷ years − 1. Unlike simple “absolute return”, it accounts for compounding and the time taken, so you can compare investments held for different periods. Example: ₹1,00,000 growing to ₹2,00,000 in 5 years is a CAGR of 14.87%, even though the absolute return is 100%.
The reverse calculation projects a value: future value = starting value × (1 + CAGR)years. CAGR smooths out the ups and downs, so a fund with a 12% CAGR may have had a −10% year and a +30% year along the way. For investments with many deposits (like a SIP), use XIRR instead.
Frequently asked questions
What is the CAGR if money doubles in 5 years?
About 14.87% a year. Money doubling in 10 years is about 7.18%.
What is the difference between CAGR and absolute return?
Absolute return is the total percentage gain, ignoring time. CAGR converts it into an equivalent yearly compounded rate.
Can I use CAGR for SIP returns?
Not accurately, because a SIP has many investments made on different dates. XIRR is the right measure for SIPs.