CAGR Calculator
Turn a start value, an end value and a time period into one annual growth rate you can compare across any investment — stocks, property, a business, or a mutual fund.
CAGR
20.11%
per year
Absolute return
150.00%
over the whole period
Money multiplied
2.50x
Growing ₹1,00,000 into ₹2,50,000 over 5 years is the same as earning a steady 20.11% every year, even if the actual year-to-year returns were uneven.
CAGR smooths out volatility into one annual figure, which makes very different investments directly comparable.
How to use
- 1Enter the initial value of the investment.
- 2Enter the final value it grew to.
- 3Set the duration in years between the two.
- 4Read the CAGR, the absolute return, and the multiple your money grew by.
Frequently Asked Questions
What is CAGR?
Compound Annual Growth Rate: the steady yearly rate that would take your investment from its starting value to its ending value over the period. It smooths out the ups and downs into a single comparable number.
How is CAGR different from absolute return?
Absolute return ignores time — doubling your money is 100% whether it took two years or twenty. CAGR builds time into the number, which is why it is the fair way to compare investments held for different periods.
What is a good CAGR?
It depends on the asset and the risk. Indian equity indices have delivered roughly 11 to 13% over long periods, fixed deposits 6 to 7%, and gold around 9 to 10%. Anything far above the asset class norm deserves a hard look at the risk being taken.
Can CAGR be negative?
Yes. If the final value is lower than the initial value, CAGR is negative — the annual rate at which the investment shrank.