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CAGR Calculator
Find the compound annual growth rate (CAGR) between a starting and an ending value: the steady yearly rate that would turn one into the other over the period. It is the usual way to compare investments held for different lengths of time on one yearly scale.
Illustrative only. Everything is calculated in your browser and nothing you type is sent anywhere. Not investment, tax or legal advice.
How the cagr calculator works
CAGR = (ending value ÷ starting value)1 ÷ years − 1.
It smooths a bumpy path into a single yearly rate, so investments of different lengths can be compared on one scale. It says nothing about the ups and downs in between, and it needs positive start and end values.
Worked example
₹1,00,000 growing to ₹2,00,000 over 5 years is a growth multiple of 2.00x. The CAGR is (2.00)1/5 − 1 = 14.87% a year, while the total return is 100.00%.
Frequently asked questions
What is CAGR?
The compound annual growth rate: the constant yearly rate that grows a starting value into an ending value over a period, with gains compounding each year.
Is CAGR the same as the average yearly return?
No. An average of yearly returns ignores compounding. For volatile series the two numbers differ.
Can CAGR be used for SIP returns?
Not directly. A SIP invests at many dates, so use XIRR for money added over time. CAGR suits a single starting amount and a single ending value.
Does a high CAGR mean the same growth will continue?
No. It describes the past period you entered only.
Related
Educational tool, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Results depend on the numbers you enter and on assumptions stated above.