CAGR Calculator
CAGR (Compound Annual Growth Rate) expresses an investment's growth as a single smoothed annual rate — useful for comparing a single lump-sum investment across different time periods.
Show solution steps
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Formula
CAGR = (Ending Value / Beginning Value)1/years − 1
CAGR is only valid for a single entry, single exit investment. If you added or withdrew money at different points in time (like a SIP or SWP), CAGR will give a misleading answer — use XIRR instead, since it correctly accounts for the timing of each cash flow.
Worked Examples
Example 1 u2014 3-year growth
₹1,00,000 → ₹1,50,000 over 3 years: CAGR ≈ 14.47% per year.
Example 2 u2014 Comparing two investments
Investment A doubles in 5 years (CAGR ≈ 14.9%); Investment B grows 60% in 3 years (CAGR ≈ 16.96%). Despite the smaller total gain, B compounds faster per year — which is exactly what CAGR reveals.
Definitions
- Beginning Value
- The investment's value at the start of the period.
- Ending Value
- The investment's value at the end of the period.
- Number of Years
- The length of the holding period, used to annualize the growth.
- CAGR
- Compound Annual Growth Rate — the single smoothed annual rate that would take the beginning value to the ending value. Valid only for a single lump-sum investment.
How to Use
- Enter the beginning value of your investment.
- Enter the ending (current or final) value.
- Enter the number of years between the two values.
- Read the CAGR and the absolute rupee gain instantly.