CAGR Calculator

Find the steady yearly growth rate that takes a value from its starting level to its ending level, or project a value forward at a given CAGR.

CAGR formula

CAGR = (Ending value ÷ Beginning value)^(1 ÷ years) − 1 Future value = Beginning value × (1 + CAGR)^years

Example

An investment that grows from ₹1,00,000 to ₹2,50,000 in 7 years has a CAGR of 13.99%. The absolute return is 150%, but CAGR expresses it as the equivalent steady yearly rate, so you can compare it with an FD or a mutual fund. At that rate, money doubles in about 5.3 years.

Where CAGR is used

Comparing mutual fund, stock or property returns over different periods.
Measuring company revenue, profit or customer growth over several years.
Setting long-term targets ("grow revenue at 20% CAGR for five years").

Limitations

CAGR smooths out volatility: two investments can have the same CAGR with very different ups and downs along the way. It also assumes a single investment at the start. For regular investments such as SIPs, use XIRR, or the SIP Calculator to project them.

Rule of 72: divide 72 by the CAGR to estimate years to double. At 12%, that is about 6 years.

Frequently asked questions

What is the difference between CAGR and absolute return?

Absolute return is the total percentage gain over the whole period. CAGR converts it into an equivalent yearly compounded rate, which is what you should compare across investments of different lengths.

Can CAGR be negative?

Yes. If the ending value is lower than the beginning value, CAGR is negative, which shows the average yearly rate of decline.

Results are for planning and information only and are not accounting or financial advice. Check important figures with your accountant.