CAGR Calculator - Compound Annual Growth Rate
Calculate CAGR (Compound Annual Growth Rate) to measure investment performance. Find beginning value, ending value, or number of years from any two known inputs.
About this calculator
CAGR, the compound annual growth rate, is the single yearly rate that would take an investment from its starting value to its ending value if it grew by the same percentage every year. It smooths out a bumpy ride into one comparable number, which is why fund factsheets, company reports and portfolio trackers all quote it.
This calculator works in four directions. Give it the start value, end value and years to get the CAGR. Or give it any three of the four quantities and solve for the missing ending value, starting value or number of years. It also prints a year-by-year growth table so you can see the path the smoothed rate implies.
How to use it
- Pick what you want to find in the Calculate list: CAGR, ending value, starting value or years.
- Enter the other three values: Beginning Value, Ending Value, CAGR and Number of Years, leaving out the one you are solving for.
- Press Calculate.
- Read the result line, then the year-wise growth table underneath.
The CAGR formula
CAGR = (Ending value ÷ Beginning value)1/years − 1
Rearranged, Ending = Beginning × (1 + CAGR)years and Years = ln(Ending ÷ Beginning) ÷ ln(1 + CAGR). CAGR assumes no deposits or withdrawals in between. If money went in on several dates, use the XIRR calculator instead.
Worked example
₹1,00,000 that became ₹2,00,000 in 7 years
| Ending ÷ beginning | 2.00 |
| Power of 1/7 | 1.1041 |
| CAGR | 10.41% a year |
Doubling in 7 years needs just over 10.4% a year. The Rule of 72 gives 72 ÷ 7 ≈ 10.3%, a quick cross-check.
Tips and common mistakes
- CAGR hides volatility. Two investments with the same CAGR can feel very different on the way.
- Compare like with like: use the same start and end dates for every investment you compare.
- A fund that lost 50% and then gained 100% has a CAGR of 0%, not 25%. Averaging the yearly returns overstates growth.
- If you added money during the period, CAGR is the wrong tool. Use XIRR.
- Use the solve-for-years option to answer questions like how long it takes to reach a target at a given return.
Frequently asked questions
What is a good CAGR?
It depends on the asset. Indian large-cap equity has historically delivered roughly 11 to 13% over long periods, debt funds 6 to 8% and fixed deposits around the current deposit rate. Compare against inflation and against the benchmark for that asset class.
Is CAGR the same as average annual return?
No. The average of yearly returns ignores compounding and overstates growth when returns vary. CAGR is the geometric rate and is the figure that matches your actual ending value.
Can CAGR be negative?
Yes. If the ending value is below the starting value, the CAGR is negative and shows the yearly rate of decline.
Can I use it for SIP investments?
Not directly, because a SIP has many cash flows at different dates. Use XIRR or the SIP calculator.
Can I use it for things other than money?
Yes. CAGR works for any quantity that compounds, such as revenue, users, population or website traffic.
What time period should I use?
Use full years or fractions of a year, for example 2.5 for 30 months. Very short periods give misleadingly large CAGRs.