CAGR Calculator
Calculate compound annual growth rate from initial investment and final value. See absolute gain and year-wise growth.
Results
- Absolute gain
- ₹1,00,000
- Absolute return
- 100.00%
- Initial investment
- ₹1,00,000
- Final value
- ₹2,00,000
CAGR
14.87%
| Year | Opening | Gain | Closing |
|---|---|---|---|
| 1 | ₹1,00,000 | ₹14,870 | ₹1,14,870 |
| 2 | ₹1,14,870 | ₹17,081 | ₹1,31,951 |
| 3 | ₹1,31,951 | ₹19,621 | ₹1,51,572 |
| 4 | ₹1,51,572 | ₹22,538 | ₹1,74,110 |
| 5 | ₹1,74,110 | ₹25,890 | ₹2,00,000 |
About CAGR
Compound Annual Growth Rate (CAGR) is the constant yearly rate that would take your initial investment to the final value over the holding period: ((Final ÷ Initial)1 ÷ years − 1) × 100.
Absolute gain and absolute return show the total rupee and percentage change without annualising. The year schedule is illustrative growth at the computed CAGR — actual markets do not grow in a straight line.
Assumes a single lump sum with no interim cash flows. For SIPs or multiple deposits, use XIRR (see mutual fund returns calculator). Not financial advice.
Last updated: 12 July 2026. CAGR assumes a single lump sum with no interim cash flows — use XIRR for SIPs and irregular deposits.
What is CAGR?
Compound Annual Growth Rate (CAGR) expresses how fast an investment grew (or shrank) on an annualised basis. It answers: “If this grew at a steady rate each year, what rate would that be?”
Investors use CAGR to compare mutual funds, stocks, gold or any asset held for different lengths of time on a like-for-like yearly basis.
How CAGR is calculated
CAGR (%) = ((Final value ÷ Initial investment)1 ÷ years − 1) × 100
Absolute gain = Final − Initial · Absolute return (%) = (Gain ÷ Initial) × 100
Worked example: ₹1,00,000 grows to ₹2,00,000 in 5 years → absolute gain ₹1,00,000 (100%); CAGR ≈ 14.87% per year.
CAGR vs total ROI vs SIP
| Feature | CAGR | Total ROI | SIP returns |
|---|---|---|---|
| What it measures | Smoothed yearly growth rate | Total % gain or loss over the period | Projected corpus from monthly investing |
| Best for | Comparing lump-sum holdings of different tenures | Quick profit/loss snapshot | Planning recurring mutual fund investments |
| Cash flows | Single start and end value | Single start and end value (+ optional fees) | Many monthly deposits |
| Limitation | Ignores interim deposits/withdrawals | Not annualised unless you use CAGR mode | Assumes constant expected return |
Fees, dates and inflation: ROI calculator. Monthly investing: SIP calculator. Past SIP/XIRR: Mutual fund returns.
Who should use a CAGR calculator?
Anyone comparing lump-sum investment performance across different holding periods — equity, debt, property appreciation or gold — when you know a clear start and end value.
Frequently asked questions about CAGR
What is CAGR?
Compound Annual Growth Rate is the constant yearly rate that would grow your initial investment to the final value over the holding period. Formula: ((Final ÷ Initial)^(1 ÷ years) − 1) × 100.
How is absolute gain different from CAGR?
Absolute gain is Final − Initial in rupees. Absolute return is that gain as a percentage of the initial amount. CAGR annualises the same journey so you can compare 3-year and 10-year investments fairly.
When is CAGR not shown?
If initial investment, final value or years is zero or negative in a way that makes the formula undefined, CAGR is blank. Enter positive start and end values with at least one year.
Can CAGR be negative?
Yes. If the final value is below the initial investment, CAGR is negative and shows the annualised rate of loss.
Does the year schedule show real market returns?
No. It illustrates what balances would look like if the investment grew at a constant CAGR each year. Markets fluctuate; actual year-by-year returns differ.
Should I use CAGR for SIP investments?
CAGR assumes one lump sum. For SIPs with many cash flows, XIRR (or a mutual fund returns calculator) is more accurate.
Is CAGR the same as annualized ROI?
For a single lump-sum investment with no fees, yes — they use the same formula. Our ROI calculator also supports fees, inflation and date-based holding periods.
What is a good CAGR for equity mutual funds?
There is no fixed benchmark. Long-term equity may aim above inflation and fixed-deposit rates, but past CAGR does not guarantee future results. Compare against relevant indices and your risk tolerance.
Does this include taxes or exit loads?
No. Enter after-tax or after-cost final values if you want net CAGR. Capital gains tax and loads reduce realised returns.
Can I reverse-solve for a target final value?
This calculator measures CAGR from known start and end values. For target-return goal-seek, use the ROI calculator’s target final value mode.
Disclaimer: Illustrative math only. Past returns do not guarantee future performance. Not financial advice.
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