CAGR Calculator — The Real Growth Rate of Your Money

Returns jump around year to year. CAGR irons them into one honest number. Enter where an investment started, where it ended and how long it took.

₹
₹
Yrs
Compound Annual Growth Rate
12.25%
per year, compounded
Total Growth
150%
₹1,50,000 gained
Money Multiplied
2.50×
in 6 years
Rule of 72
5.9 yrs
time to double at this CAGR
Smooth Growth at This CAGR
Start vs Final Split

📌 CAGR vs the Crowd

Year-Wise Smooth Path

YearValue at This CAGRGrowth in Year

The CAGR Formula (With Worked Example)

CAGR turns a messy journey into one steady rate - the fixed yearly growth that would take you from start to finish in the same time:

CAGR = (Final / Initial)1/n − 1

Worked Example

₹1,00,000 grows to ₹2,50,000 in 6 years:

1. Ratio = 2,50,000 / 1,00,000 = 2.5
2. 2.51/6 = 1.1650
3. CAGR = 16.50% - even if the fund fell twice along the way

Using CAGR Honestly

  • CAGR hides the ride: A fund that crashed 30% mid-way and one that cruised can share the same CAGR. Pair it with a look at worst years.
  • Compare like with like: Line up the same dates for two investments - a 2019-24 CAGR and a 2021-24 CAGR are not the same contest.
  • Not for SIPs: With money going in every month, use the XIRR calculator instead - CAGR assumes one deposit and one exit.
  • Past is not promise: A 15% past CAGR says what happened, not what will. Use it to compare, not to predict.

CAGR FAQs

Over long periods, broad Indian equity index funds have historically delivered roughly 11-13% CAGR, and good active funds a bit more, though with sharp falls in bad years. Anything consistently far above that usually comes with much higher risk. Fixed deposits sit near 6-7%. Compare any fund's CAGR against its benchmark index over the same dates.

Total return ignores time. "Up 150%" sounds identical whether it took 6 years or 20 - but the first is a 16.5% CAGR and the second under 5%. CAGR divides growth by time fairly, which is the only way to compare investments held for different periods.

Yes. If the final value is below the starting value, CAGR is negative - Rs 1,00,000 falling to Rs 80,000 in 3 years is a CAGR of about -7.2%. The formula handles it the same way; only the sign changes.