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Calculate the Compound Annual Growth Rate between a starting value and an ending value over a number of years — the standard way to compare investment performance.
Last updated 5 September 2026
CAGR
14.87%
Absolute return
100%
Growth multiple
2×
Gain
₹1,00,000
What the investment was worth at the start.
What it is worth now, or at the end of the period.
The CAGR, absolute return and growth multiple appear instantly.
CAGR = (Final ÷ Initial) ^ (1 ÷ years) − 1
(200000 ÷ 100000) ^ (1 ÷ 5) − 1 = 2^0.2 − 1 ≈ 1.1487 − 1 = 0.1487, i.e. about 14.87% compounded every year for 5 years.
Absolute return tells you the total growth over the whole period — doubling your money is a 100% absolute return whether it took 2 years or 20.
CAGR converts that into a yearly rate so investments held for different lengths of time can be compared fairly. It is the number fund fact-sheets quote.
CAGR's main practical use is putting two investments of different durations on the same footing — a stock that doubled in 4 years and one that doubled in 8 years both had a 100% absolute return, but very different CAGRs (roughly 19% vs 9%), which is the number that actually reflects which one grew faster per year.
Be cautious comparing CAGR across very different risk levels though — a higher CAGR on a volatile stock isn't directly comparable to a lower CAGR on a stable bond fund without also considering how much the value fluctuated along the way.
No. CAGR is a smoothed average. The investment may have gained 40% one year and lost 10% the next; CAGR is the single constant rate that would produce the same final value.
Yes. If the final value is below the initial value, the CAGR is negative — the investment shrank at that compounded rate each year.
No. CAGR is for a single lump sum. For regular contributions use XIRR (not covered here) or our SIP calculator for projections.
Use the same period for every option you compare — 3, 5 or 10 years are standard. Short periods are heavily influenced by market timing.
Yes, informally — applying a past or assumed CAGR forward gives a projection, though it carries the same caveat as any SIP projection: real returns vary and past performance is not a guarantee.
Yes — enter any positive number of years, including fractions, which is useful when comparing investments held for an odd number of months rather than whole years.
Broad Indian equity indices have historically delivered roughly 12-15% CAGR over long periods, though any single stock or fund can vary widely above or below that.
This calculator provides estimates for general information only. Results are mathematical calculations based on the figures you enter and standard formulas. Actual bank, loan, deposit and investment products may differ due to fees, rounding conventions, day-count methods and changing rates and rules. Projected investment returns are not guaranteed and you may get back less than you invest. Nothing here is financial, tax or investment advice — verify the actual terms with the relevant institution or a qualified adviser before making a decision. See our full disclaimer.