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CAGR calculator

One honest number for a lumpy journey.

Annualise any investment's start and end values into a comparable growth rate — funds, property, gold, or that old policy.

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CAGR Calculator

Compound Annual Growth Rate

0%

Absolute return

150%

Growth multiple

2.50×

Entered values: ₹10,00,000 growing to ₹25,00,000 in 5 years.

How the CAGR calculation works

CAGR = (Final ÷ Initial)^(1/years) − 1. It compresses a lumpy journey into one smooth annual rate — the rate at which your money would have had to grow every year to travel from the starting value to the ending value.

Worked example

An investment that grew from ₹10,00,000 to ₹25,00,000 over 5 years:

Initial value₹10,00,000
Final value₹25,00,000
Duration5 years
Absolute return150%
CAGR20.11% p.a.

The same absolute gain stretched over 15 years works out to just 6.29% p.a. — time changes the entire story, which is exactly what CAGR exposes.

Frequently asked questions

CAGR vs absolute return — which should I use?
Absolute return (total % gain) is fine for periods under a year. Beyond that, CAGR is the honest yardstick because it annualises, letting you compare a 3-year fund against a 7-year property against an 18-month FD.
What is a good CAGR for equity funds?
Beating the Nifty 50 TRI over the same window is the fairest bar, since index funds deliver it without manager risk. Historically that has meant roughly 11–13% over long stretches — with meaningful year-to-year swings hidden inside.
What are CAGR's blind spots?
It only uses two endpoints and assumes smooth compounding. A portfolio that doubled then halved shows a flattering CAGR if measured at the peak pair of dates. For investments with irregular cash flows (SIPs, partial exits), use XIRR instead.
How is CAGR different from XIRR in my policy or portfolio?
CAGR handles one-in, one-out journeys. XIRR generalises it for multiple deposits and withdrawals at different dates — our LIC calculator computes XIRR, while this one suits single-entry holdings like a lumpsum fund investment.

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