Money calculator

CAGR calculator

Compound annual growth rate is the steady yearly rate that takes a starting value to an ending value. Use it to compare investments, sales or anything that grows.

Starting value

Ending value

Number of years

CAGR

–

–absolute return

–to double at this rate

–growth multiple

The steady path at this CAGR

CAGR formula

CAGR = (Ending value ÷ Starting value)^(1 ÷ years) − 1

CAGR smooths out the ups and downs. If an investment grew from ₹1,00,000 to ₹2,50,000 in 7 years, it grew 150% in total, but that is about 14% a year once compounding is taken into account.

CAGR or absolute return?

Absolute return ignores time. 50% in 2 years and 50% in 10 years look the same. CAGR turns both into a yearly rate so you can compare them fairly.

Can I use CAGR for a SIP?

Not directly, because money went in at different times. For SIPs, fund houses use XIRR. CAGR suits a single, one-time investment.