CAGR Calculator
Yearly growth rate between two values, plus future value, return needed and time to goal.
Growth at a steady rate
CAGR smooths out the ups and downs: real investments rarely grow by the same percentage every year.
Year by year
How this was calculated
Results are estimates for general information and planning, not financial advice. Banks and institutions may calculate differently (rounding, fees, rate changes). Confirm figures with your lender or a qualified adviser before deciding.
About the CAGR Calculator
CAGR — compound annual growth rate — is the steady yearly rate at which a value would have to grow to get from its starting value to its ending value over a period. It turns an uneven journey (+30% one year, −10% the next) into one comparable yearly figure, which is why it is used for investment returns, revenue, profit and user growth.
Enter a starting value, an ending value and the period in years and months to get the CAGR. Switch modes to project a future value at a given rate, find the return needed to reach a target, or work out the time it takes. Every result shows the formula and the numbers behind it.
How to use it
- Pick what to calculate: CAGR, Future value, Return needed or Time to goal.
- Enter the starting value and the ending (or target) value. Amounts accept Indian grouping such as 1,00,000.
- Enter the period in years and months — or the yearly rate, depending on the mode.
- Read the result with the absolute change, total return, growth multiple and doubling time. The table shows the value year by year at that rate.
Examples
CAGR 20.11% a year · total return 150% · 2.5×
CAGR −15.66% a year
12.25% a year
6.12 years (about 6 years 1 month)
Common uses
- Comparing the returns of investments held for different lengths of time.
- Checking a fund's or a stock's long-term growth against its benchmark or against inflation.
- Measuring revenue, profit or user growth for a business plan or report.
- Working out the return a goal requires — and whether that return is realistic.
The CAGR formula
CAGR = (End ÷ Start)^(1 ÷ t) − 1
t is the period in years; months count as twelfths, so 2 years 6 months is 2.5. For example ₹1,00,000 growing to ₹2,50,000 in 5 years: 2.5^(1 ÷ 5) − 1 = 0.2011, a CAGR of 20.11%.
The reverse forms are FV = Start × (1 + CAGR)^t for a future value and t = ln(Target ÷ Start) ÷ ln(1 + CAGR) for the time needed.
CAGR, total return and average return
- Total (absolute) return is the overall change: ₹1 lakh to ₹2.5 lakh is +150%, however long it took.
- CAGR spreads that over the years with compounding: 150% over 5 years is 20.11% a year, not 30%.
- Average annual return, the simple mean of yearly returns, overstates growth when returns swing: +50% then −50% averages 0% but actually loses 25%. The CAGR of those two years is −13.4%.
For investments with several deposits or withdrawals, such as a SIP, CAGR is not the right measure — use XIRR, which accounts for the date of each cash flow.
Zero and negative values
CAGR needs a positive starting value: growth from zero has no rate, and a negative start (such as a loss) has no meaningful compound rate. An ending value of 0 is a total loss, which is −100% whatever the period. If either value is negative, compare the absolute change instead.
Limitations
- CAGR assumes smooth growth and hides volatility: two investments with the same CAGR can have had very different ups and downs.
- It ignores money added or withdrawn during the period, so use it for a single starting amount.
- For periods shorter than a year it annualises the return, which can exaggerate short-term moves.
- Past growth rates do not predict future ones.
Privacy
Everything happens in your browser. What you enter or open here is not uploaded or stored by MySmartCoPilot.
Frequently asked questions
What is a good CAGR?
It depends on what you measure and the risk taken. Compare a fund's CAGR with its benchmark index and with similar funds over the same period, and compare any investment's CAGR with inflation to see whether it grew in real terms.
Can CAGR be negative?
Yes. If the ending value is below the starting value the CAGR is negative — ₹50,000 falling to ₹30,000 over 3 years is −15.66% a year. An ending value of 0 is −100%.
How do I enter a period like 3 years 4 months?
Type 3 in years and 4 in months. The calculator uses t = 3 + 4 ÷ 12 = 3.333 years.
Is CAGR the same as XIRR?
Only for a single investment with nothing added or taken out. XIRR handles several cash flows on different dates, like SIP instalments, and gives the same answer as CAGR when there is just one investment and one final value.
Does it only work with rupees?
No. The maths works for any positive values — revenue, users, index levels or prices. The ₹ sign is only for display.