CAGR calculator
Turn any “it grew from X to Y” into a clean annual return. Enter the initial value, final value and period to get the compound annual growth rate, the absolute return and the growth multiple.
Investment values
Tweak the numbers - results update live
100%
Absolute return
total, not annualised
₹1L
Total gain
final − initial
2.00×
Multiple
final ÷ initial
CAGR is the steady annual rate that would turn your initial value into the final value over 5 years - smoothing out the ups and downs of real returns. It’s the fairest way to compare investments held for different periods.
CAGR
14.87%
Compare fairly
One number, any time period
CAGR answers “what steady annual return would have produced this result?” It’s the standard way to compare a 3-year fund against a 7-year one, or a stock against a deposit, on equal footing.
CAGR = (Final ÷ Initial)1/years − 1
- 1
Take both values
The amount you started with and what it became.
- 2
Find the ratio
Final ÷ initial is the total growth multiple.
- 3
Annualise it
The n-th root spreads that growth evenly across the years.
- 4
Read the rate
Subtract 1 and express as a percent - your CAGR.
Questions
Frequently asked
CAGR - Compound Annual Growth Rate - is the constant yearly rate at which an investment would have grown from its starting value to its ending value over a period, assuming the gains were reinvested. It smooths out the year-to-year volatility into one representative annual figure.
CAGR = (Final value ÷ Initial value)^(1 ÷ years) − 1, expressed as a percentage. For example, ₹1,00,000 growing to ₹2,00,000 over 5 years gives CAGR = (2)^(1/5) − 1 ≈ 14.87%. The calculator does this instantly for any two values and period.
Total (absolute) return doesn’t account for how long it took. Doubling your money in 2 years is far better than doubling it in 10. CAGR annualises the return so you can fairly compare investments held for different periods.
It depends on the asset and risk. Historically, Indian equity indices have delivered roughly 11–13% CAGR over long periods, while fixed-income instruments sit around 6–8%. A “good” CAGR is one that beats inflation and meets your goal for an acceptable level of risk.
No. CAGR is a smoothed average - it ignores the ups and downs along the way. Two investments can share the same CAGR yet have very different volatility. Use CAGR to compare returns, but also consider how bumpy the ride was before investing.