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CAGR Calculator

Cut through lumpy returns: find the single yearly growth rate that connects an investment's start and end values.

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yrs
CAGR (per year)
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Absolute return—
Money multiplied by—

Illustrative projection using the assumptions you entered. Market returns are not guaranteed; actual results will differ. This is an educational tool, not financial advice.

Growth path at this CAGR

How it works

CAGR — Compound Annual Growth Rate — answers a simple question: at what steady yearly rate would this investment have had to grow to get from its starting value to its ending value? Real investments move up and down; CAGR smooths that journey into one comparable number.

CAGR = (Ending ÷ Starting)1/years − 1

CAGR is the right way to compare investments held for different periods — a fund that returned 80% over 4 years (15.8% CAGR) genuinely beat one that returned 100% over 6 years (12.2% CAGR), even though the second headline number looks bigger. It is also how mutual fund returns are reported for periods above one year.

Use it to evaluate your own portfolio: enter what you invested and what it is worth today, and compare the result honestly against inflation and against a simple index fund. One caution — CAGR says nothing about the risk or the ups and downs taken on the way.

Frequently asked questions

Absolute return is the total percentage gained over the whole period, ignoring time. CAGR annualises it. An investment that doubles in 10 years has a 100% absolute return but only a 7.18% CAGR.
Broad Indian equity indices have delivered roughly 11–13% CAGR over long periods, with wide variation between periods. Judge a fund against its benchmark's CAGR over the same dates, not against a fixed number.
Yes — if the ending value is below the starting value, the formula produces a negative CAGR, representing the average yearly rate of decline.

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