CAGR calculator
CAGR (compound annual growth rate) is the steady yearly rate at which a value would have grown from its start to its end. Use it to compare stocks, funds or any investment held for different lengths of time.
Years can be a fraction: 18 months is 1.5. CAGR uses only the start and end values, so it fits a single lump sum. For several buys and sales on different dates, XIRR is the right measure.
Value year by year at 16.50% a year
How CAGR is calculated
₹1,00,000 growing to ₹2,50,000 in 6 years is a 150% absolute return, but a CAGR of 16.5% a year.
CAGR is the rate that, compounded every year, turns the start into the end. Because it smooths out the ups and downs, investments held for different periods can be compared on the same footing; it does not show how bumpy the path was. For a withdrawal plan see the SWP calculator.
Frequently asked questions
Compound annual growth rate: the constant yearly rate at which an investment would grow from its starting value to its final value over the period.
Absolute return is the total gain as a percentage of the start, whatever the period. CAGR spreads that gain over the years, compounding, so it can be compared across periods.
CAGR uses one starting and one final value, so it fits a single lump sum. XIRR handles many cash flows on different dates, such as SIPs or several buys.
Yes. If the final value is below the starting value, CAGR is negative: the yearly rate at which the value fell.
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For information and education only — not investment advice. Please confirm contract details with your broker or the exchange before trading.