CAGR Calculator

Find out the annualised return (CAGR) between any two investment values.

Amount you invested at the start (Rs)

Value of your investment today (Rs)

Number of years between start and end

Your CAGR Result

CAGR

14.87% p.a.

Absolute Gain

₹1.00 L

Initial Investment

₹1.00 L

Final Value

₹2.00 L

Investment Growth

How the CAGR Calculator Works

CAGR (Compound Annual Growth Rate) is the single, smoothed-out annual rate at which an investment would have grown if it had grown at a steady rate every year, instead of the bumpy up-and-down path most investments actually take. It's the standard way fund houses, analysts, and this site express multi-year mutual fund and stock returns, because it lets you compare a 3-year return to a 7-year return on equal footing.

This calculator only needs three numbers: what the investment was worth at the start, what it's worth now (or at the end of the period), and how many years passed in between. It doesn't need to know the path the value took in between -- a fund that fell 20% then rose 50% and a fund that grew steadily can have the exact same CAGR if they end up at the same place.

CAGR (%) = [ (Ending Value ÷ Starting Value) ^ (1 ÷ Years) − 1 ] × 100

Worked example

Suppose you invested ₹1,00,000 in a fund and it's worth ₹1,75,000 exactly 5 years later. CAGR = [(1,75,000 ÷ 1,00,000)^(1/5) − 1] × 100 ≈ 11.84% per year -- even though the fund's actual year-by-year returns almost certainly varied.

Frequently asked questions

Is CAGR the same as the average annual return?

No. A simple average of yearly returns can be misleading because it ignores compounding -- a -50% year followed by a +100% year averages to +25%, but the investment is actually back to where it started (0% CAGR). CAGR always reflects the true compounded growth rate.

Can CAGR be negative?

Yes. If the ending value is lower than the starting value, CAGR will be negative, showing the average annual rate at which the investment lost value.

Does CAGR account for SIP or multiple investments?

No -- CAGR is designed for a single lump-sum investment held from a start date to an end date. If you invested through monthly SIPs or added money at different times, use XIRR instead, which handles multiple cash flows on different dates.