CAGR Calculator
CAGR (Compound Annual Growth Rate) answers a simple question: at what steady yearly rate would my starting value have had to grow to reach the ending value? It turns any 'bought at X, worth Y after N years' situation into an annualised, comparable number.
Enter the initial value, the final value and the period; you get the CAGR, the absolute return, the growth multiple and how long money doubles at that rate.
How it works
- CAGR = (Final ÷ Initial)^(1/years) − 1.
- Absolute return = (Final − Initial) ÷ Initial — the unannualised percentage.
- Doubling time uses the exact compounding formula at the computed CAGR.
Frequently asked questions
What is the difference between CAGR and absolute return?
Absolute return ignores time — a 100% gain sounds great until you learn it took 15 years (that is under 5% a year). CAGR spreads the growth evenly across years so a 3-year and a 10-year investment can be compared on equal footing.
When is CAGR the wrong measure?
When money went in or came out along the way — SIPs, top-ups, partial withdrawals. CAGR only handles a single starting value and a single ending value. For multiple cash flows, XIRR is the correct annualised measure.
What is a good CAGR for stocks in India?
Benchmark it against the alternatives: large-cap indices have delivered roughly 11–13% over long periods, quality mid/small-cap funds sometimes more with far bigger swings, and FDs 6–7%. A stock pick only 'worked' if its CAGR beat the index you could have bought instead.
Can CAGR be negative?
Yes — if the final value is below the initial value, CAGR is negative, meaning the investment shrank at that compound rate each year. The calculator shows it in red.
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This tool is an educational estimate, not investment or tax advice. Rates and rules change — verify current figures and consult a professional before acting.