CAGR (Compound Annual Growth Rate) Calculator 2026

Calculate the true annual compounded growth rate of your stocks, mutual funds, and real estate investments.

Initial Investment Value (₹)

Quick Presets:

100010000000

Final Investment Value (₹)

100050000000

Holding period

Yrs

1 Yr40 Yrs

CAGR: 20.11%; Annualized return over 5 years.

Returns at a glance

Absolute gain: ₹1.50 L
Absolute return: 150.00%
Initial: ₹1.00 L
Final: ₹2.50 L

Implied year-by-year value at 20.11% CAGR

Year	Value	Growth from start
Y0	₹1.00 L	0.0%
Y1	₹1.20 L	20.1%
Y2	₹1.44 L	44.3%
Y3	₹1.73 L	73.3%
Y4	₹2.08 L	108.1%
Y5	₹2.50 L	150.0%

Growth curve

CAGR Formula

Standard Formula

CAGR = (E ÷ S)^(1/n) − 1

Live Calculation (Plugging Your Values)

End value (E):₹2.50 L

Start value (S):₹1.00 L

Years (n):5

Substituted Equation:

(₹2.50 L ÷ ₹1.00 L)^(1/5) − 1 = 2.5000^(1/5) − 1

CAGR (a year):20.11%

CAGR is the one steady yearly rate that turns the start value into the end value. It ignores the ups and downs in between, and it cannot handle money added or taken out along the way.

About the CAGR Calculator

Compound Annual Growth Rate (CAGR) (CAGR) is the smoothed-out, annualized rate at which an investment would have to grow each year to reach the end value from the start value. It strips out the ups and downs and gives you a single comparable number — which is why it's the standard for comparing mutual funds, stocks, and businesses.

CAGR isn't the actual year-by-year return — those typically swing widely. It's the geometric mean of returns. For investments held under one year, use absolute return; CAGR only makes sense for multi-year holdings.

How it Works

Initial value — what you invested or the starting NAV/price.
Final value — current value or sale value.
Holding period — number of years between the two.

Benefits of CAGR

Standardized return measure — compare any two investments fairly.
Smooths volatile year-on-year returns into a single number.
Used universally in mutual fund factsheets, stock reports, and SEBI disclosures.
Easy to translate into expectations: "12% CAGR doubles money in ~6 years" (Rule of 72).

Caveats

Hides volatility. Two funds with identical CAGR can have wildly different risk.
Sensitive to start/end dates — picking different windows gives different CAGRs.
For investments with cash flows in/out (SIPs), use XIRR/SIP returns instead.

References

How these numbers are checked →

Frequently Asked Questions — CAGR

What is CAGR (Compound Annual Growth Rate)?

The single annual rate at which an investment would have grown from its starting value to its ending value, if it had grown steadily. It smooths out year-to-year volatility into one comparable number.

What is the formula for CAGR?

CAGR = (End Value ÷ Start Value)^(1 ÷ Years) − 1, shown as a percentage. It needs only three inputs, and it answers "what steady annual rate would have taken me from here to there". ₹5,00,000 growing to ₹12,00,000 over eight years is (12÷5)^(1÷8) − 1 = 11.56% a year. Note that CAGR smooths the path completely: a fund that fell 30% and then doubled shows the same CAGR as one that rose steadily, so it tells you nothing about the ride.

When should I use XIRR instead of CAGR?

Whenever there is more than one cash flow. CAGR assumes a single investment at the start, so it cannot measure a SIP or a portfolio with additions and withdrawals. XIRR handles irregular dated cash flows and is the correct measure for any SIP return.

What counts as a good CAGR in India?

Over long periods, roughly 11%–13% from diversified Indian equity, 7%–8% from gold, 6%–7% from debt funds and FDs, and 8%–10% from residential property before maintenance and transaction costs. Judge any fund's CAGR against its benchmark and category over the same window, not against these averages — a 14% CAGR in a year the index gave 18% is underperformance.

Why does my mutual fund statement show XIRR and not CAGR?

Because you invested through a SIP. CAGR needs one investment at the start and one value at the end. A SIP puts in money every month, so each instalment has its own holding period, and XIRR is the rate that accounts for the dates and sizes of all of them. The fund factsheet still quotes CAGR because it tracks a single notional lumpsum in the scheme, not your actual instalments. Compare your XIRR with the scheme CAGR and they will rarely match.

Can CAGR be negative, and what does that mean?

Yes. If ₹10 lakh falls to ₹7 lakh over three years, the CAGR is −11.21% a year. It means the investment shrank at that steady annual rate. A negative CAGR over one or two years is normal for equity and says little; over seven years or more it is a real signal to look at whether the fund has drifted from its mandate or the sector has structurally changed.

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