CAGR Calculator

Measure the true yearly growth rate of an investment.

Initial value

Final value

Years

Months

CAGR—

Absolute return—

Money multiplied—

Project a future value

Amount invested

CAGR (%)

Years

Future value—

⚠️ For education only — not investment advice or a recommendation to buy or sell any security. Trading involves risk of loss. Verify charges and prices with your broker.

How to use the CAGR Calculator

Enter the starting and ending value of your investment.
Enter the time period in years (and months).
Read the CAGR and absolute return.
Use the second box to project a future value at a chosen CAGR.

CAGR formula

CAGR = (End value ÷ Start value)^{1 / years} − 1

Example: ₹1,00,000 growing to ₹2,00,000 in 5 years → CAGR = 2^0.2 − 1 ≈ 14.87% per year. The absolute return is 100%, but CAGR shows the steady yearly rate that would produce it.

CAGR vs absolute and average returns

Absolute return ignores time; a simple average of yearly returns overstates growth when returns vary. CAGR smooths returns into one compounded yearly rate, which makes it the standard way to compare stocks, mutual funds and other investments over different periods.

Frequently asked questions

Can I use CAGR for SIP investments?

No. CAGR assumes a single lump-sum investment. For SIPs, use XIRR, which accounts for each instalment’s date.

Guides & articles

📈 Stocks CAGR Explained: The Right Way to Measure Returns Why “60% returns” can mean less than “100% returns” — learn what CAGR is, how to calculate it, and how to use it to compare investments fairly. 31 October 2026 · 2 min read