CAGR Calculator
Find the compound annual growth rate between a starting and ending value over any number of years — the standard way to compare returns across different periods.
Compound Annual Growth Rate
20.11%
per year, over 5 years
Absolute return
150.00%
Growth multiple
2.50×
Total gain
₹1,50,000
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Tools that naturally follow this calculation.
Smoothed growth path at this CAGR
The actual journey almost certainly was not this smooth — CAGR shows the equivalent constant rate.
- Value at CAGR
Example calculation
(₹2,50,000 ÷ ₹1,00,000)1/5 − 1 = 20.11% per year. The absolute return is 150.00%, but spreading it across 5 years gives the annualised figure that lets you compare this investment with others held for different periods.
What is CAGR?
Compound Annual Growth Rate (CAGR) is the constant yearly rate at which an investment would have had to grow to go from its starting value to its ending value over a given period. It smooths out year-to-year ups and downs into one comparable number.
CAGR formula
CAGR = (Ending value ÷ Starting value)1 / years − 1
Absolute return, by contrast, is simply (Ending − Starting) ÷ Starting and ignores how long the money was invested.
When CAGR is not enough
CAGR assumes a single investment at the start and a single value at the end. If you invested at several dates — as in a SIP — the correct measure is XIRR, which accounts for the timing of each cash flow. See our CAGR vs XIRR guide.
Assumptions & Limitations
- •Assumes one investment at the start and one value at the end.
- •Ignores interim cash flows, dividends withdrawn, or additional purchases.
- •Fractional years are supported (e.g. 2.5 years).
Frequently asked questions
Methodology last reviewed: 1 June 2026