CAGR Calculator
Calculate the compound annual growth rate (CAGR) of any investment between two values and compare returns fairly.
Enter a value that satisfies the displayed range and increment.
Enter a value that satisfies the displayed range and increment.
Enter a value that satisfies the displayed range and increment.
CAGR
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Absolute Return
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Total Gain
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How the CAGR calculator works
Enter the value you started with, the value you ended with, and the number of years. The calculator applies CAGR = (End ÷ Start)1/years − 1 and also shows the simple absolute return and total gain.
Why CAGR matters
CAGR turns any pair of values into a single comparable annual rate. It lets you line up a stock, a mutual fund, gold, and an FD on the same scale — crucial when their holding periods differ. For investments with regular additions like SIPs, switch to XIRR instead.
Methodology and limits
- Method version
cagr-ratio-v1- Class
- A / R1 (pure-math)
- Effective date
- not-applicable
- Jurisdiction
- not-applicable
- Source status
- not-required-pure-math
- Rounding
- Keep full precision for calculation; round only when formatting displayed INR values.
- Review trigger
- formula, input-contract, rounding, assumption, or methodology-copy change
Formula: CAGR = ((endingValue / startingValue)^(1 / years) - 1) × 100
Educational boundary: Historical arithmetic only; CAGR is not a forecast and does not describe the path between two values.
Included: Positive beginning and ending values; A whole-year interval
Excluded: Interim cash flows; Volatility, risk, fees, taxes, forecasts or suitability
Inputs: startingValue (INR; 1000–100000000; default 100000, existing public route default) · endingValue (INR; 1000–100000000; default 200000, existing public route default) · years (whole years; 1–50; default 6, existing public route default)
Outputs: cagrPercent (percent; raw calculation; displayed to two decimal places) · absoluteReturnPercent (percent; raw calculation; displayed to two decimal places) · absoluteGain (INR; raw calculation; displayed rounded to nearest rupee)
Assumptions: Starting and ending values are positive. The period is a whole number of years.
- Educational illustration only; outputs are not forecasts, guarantees, recommendations, or personalised advice.
- Returns, rates, inflation, fees, taxes, cash-flow timing, and product terms can differ from the entered assumptions.
- Displayed rupee values are rounded only after the full-precision calculation.
- CAGR smooths the path and does not show volatility, interim cash flows, fees, or taxes.
Frequently Asked Questions
What is CAGR?
Compound Annual Growth Rate (CAGR) is the smooth annual rate at which an investment would have grown from its start value to its end value over a period, assuming profits are reinvested. It is the standard way to compare returns across investments and time periods.
How is CAGR calculated?
CAGR = (End Value ÷ Start Value)^(1 ÷ years) − 1. For example, ₹1,00,000 growing to ₹2,00,000 in 6 years gives a CAGR of about 12.2%.
How is CAGR different from absolute return?
Absolute return is the total percentage gain regardless of time. CAGR annualises it, so a 100% gain over 6 years (≈12.2% CAGR) can be compared fairly with a 50% gain over 3 years (≈14.5% CAGR).
When should I NOT use CAGR?
CAGR assumes a single start and end value. For investments with multiple cash flows in and out (like SIPs), use XIRR instead, which accounts for the timing of each flow.
Disclaimer: This calculator produces illustrative estimates only. Actual returns vary and, unless stated otherwise, results exclude expense ratios, exit loads, transaction costs, and taxes. Assumed rates are inputs, not forecasts or assured returns. This is educational content, not personalized investment advice — see our full disclaimer.