CAGR Calculator
Find the compound annual growth rate of any investment live — plus absolute return, total gain and a year-by-year projection.
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- Instant, on-screen results
- Built by our CA · CS team
- Rules cited on the page
Enter your figures — the result on the right updates as you type.
Year-by-year projected growth
at the calculated CAGR| Year | Opening | Growth | Closing |
|---|
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Disclaimer: CAGR is a hypothetical smoothed rate for illustration only and does not represent guaranteed or actual year-on-year returns. It ignores intermediate volatility, additional contributions and taxes. Not investment advice.
What is CAGR?
The Compound Annual Growth Rate (CAGR) is the constant year-on-year rate at which an investment would have grown from its starting value to its ending value, assuming profits were reinvested each year. It answers the question: "at what steady annual rate did my money compound?" Because it smooths out volatility, CAGR is the fairest single number for comparing very different investments over the same period.
CAGR at a glance — example rates
The CAGR depends entirely on how much the value grew and over how many years. The longer the period, the lower the annual rate needed to reach the same multiple.
| Final value | 3 years | 5 years | 10 years |
|---|---|---|---|
| ₹1,50,000 (1.5×) | 14.47% | 8.45% | 4.14% |
| ₹2,00,000 (2×) | 25.99% | 14.87% | 7.18% |
| ₹3,00,000 (3×) | 44.22% | 24.57% | 11.61% |
| ₹5,00,000 (5×) | 70.998% | 37.97% | 17.46% |
Worked example
Suppose you invested ₹1,00,000 and it grew to ₹2,00,000 in 5 years. Here is exactly how the CAGR, absolute return and total gain are worked out.
Key terms explained
CAGR (annualised return)
The smoothed constant annual rate that compounds your initial value into the final value. Best for comparing investments of different sizes and durations on a like-for-like basis.
Absolute return
The total percentage gain over the whole period, ignoring time — (Final − Initial) ÷ Initial × 100. A 100% absolute return could be earned in 1 year or 10; it does not tell you the annual pace.
Total gain
The plain rupee profit, Final − Initial. Simple to read but ignores both time and scale, so two investments with the same ₹ gain can have very different CAGRs.
CAGR vs actual returns
CAGR assumes steady growth, but real markets are volatile. Two portfolios ending at the same value have the same CAGR even if one swung wildly and the other grew smoothly — CAGR hides that risk.
Questions people ask
Short answers on CAGR Calculator. Tap a question to open it.
01What is CAGR?
Compound annual growth rate — the single constant annual rate that would take your starting value to your ending value over the period. It smooths out the year-to-year ups and downs into one comparable number.
02How is CAGR calculated?
CAGR = (ending value ÷ beginning value)^(1 ÷ number of years) − 1, expressed as a percentage. This tool does the compounding for you from the two values and the period.
03How is CAGR different from absolute return?
Absolute return tells you how much you gained in total; CAGR tells you at what yearly rate that happened. A 60% gain over 5 years is a CAGR of about 9.9%, not 12%.
04Can CAGR be negative?
Yes. If the ending value is below the starting value, CAGR is negative and shows the average annual rate of decline.
05What are the limits of CAGR?
It assumes a single lump sum with no additions or withdrawals and hides volatility completely. For a SIP or any staggered investment, XIRR is the right measure instead.
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Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.