Compound annual growth rate

CAGR Calculator

Find the compound annual growth rate of any investment — mutual funds, stocks, gold or property — from its start value, end value and holding period.

Starting value

₹

Ending value

₹

Holding period (years)

CAGR

13.99%

Your investment grew at this rate every year for 7 years.

Absolute return

150.0%

Total gain

₹1,50,000

Calculation Assumptions

Results can differ across apps when compounding or contribution timing assumptions change.

CAGR = (ending value ÷ starting value)^(1 ÷ years) − 1.
It assumes a single investment with no deposits or withdrawals in between. For SIPs, use XIRR.
Fractional years are allowed, e.g. 2.5 for two and a half years.

What CAGR tells you

Compound Annual Growth Rate (CAGR) is the steady yearly return that would turn your starting value into your ending value. It smooths out the ups and downs, so you can compare investments held for different periods.

CAGR formula

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

Worked example

An investment that grew from ₹1,00,000 to ₹2,50,000 in 7 years has a CAGR of about 13.99%. Its absolute return is 150%, which sounds bigger but ignores the time it took.

CAGR vs XIRR

CAGR works for a single investment with one start and one end value. For SIPs or investments with several deposits and withdrawals, use XIRR, which accounts for the timing of each cash flow.

Frequently asked questions

What is a good CAGR?

It depends on the asset. Beating inflation (about 5–6% in India) is the minimum; Nifty 50 has delivered roughly 11–13% CAGR over long periods, and FDs about 6–7%.

Can CAGR be negative?

Yes, if the ending value is lower than the starting value.