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CAGR Calculator (Compound Annual Growth Rate)

This CAGR calculator gives the compound annual growth rate between a starting and an ending value. Enter both values and the number of years to get the yearly rate, the total change, and the smoothed path year by year.

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Calculator and results

Going from ₹1,00,000 to ₹2,50,000 over 5 years is a CAGR of 20.11%, a total gain of ₹1,50,000 (150%).

₹
₹

Enter part years as a decimal: 18 months is 1.5.

CAGR

20.11%

Total change

150%

Total gain

₹1,50,000

Multiple

2.50x

Growing ₹1,00,000 to ₹2,50,000 over 5 years takes 20.11% a year, every year. The real investment almost certainly did not grow that smoothly - CAGR hides the path.

What that rate looks like year by year
What that rate looks like year by year
YearValue at this rate
1₹1,20,112
2₹1,44,270
3₹1,73,286
4₹2,08,138
5₹2,50,000

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CAGR

20.11%

150% in total
What it is:
A calculator for the compound annual growth rate between two values.
What it calculates:
The annual rate, the total change over the whole period, and the smoothed year-by-year path.

Key Assumptions

  • Nothing was invested or withdrawn between the two dates.
  • The period is measured in years; a part year is entered as a decimal.
  • Taxes, costs and inflation are not deducted.

How does the CAGR Calculator work?

CAGR smooths an investment's actual path into a single annual rate. It is the rate that, applied every year without variation, gets you from the start value to the end value.

That smoothing is the point and also the limitation. Two investments with the same CAGR can have had wildly different journeys, and the one that fell 40% in the middle was a very different thing to hold.

CAGR ignores money added or taken out along the way. If you invested more during the period, CAGR will not describe your return - XIRR will. Use this for a single amount that went in once and came out once.

The calculator projects the smooth path year by year so you can see what the rate implies, and it lands exactly on the value you entered rather than drifting from a rounded rate.

A starting value of zero has no growth rate, and a period of zero years has none either. The calculator says so instead of producing infinity.

Worked example: ₹1,00,000 that grew to ₹2,00,000 in 5 years has a CAGR of 14.87%. A share bought at ₹500 and worth ₹1,350 six years later has a CAGR of 18.0%. A value that fell from ₹1,00,000 to ₹80,000 over 4 years has a CAGR of -5.43%.

CAGR in Excel or Google Sheets: with the start value in B1, the end value in B2 and the years in B3, type =(B2/B1)^(1/B3)-1 and format the cell as a percentage. The built-in =RRI(B3,B1,B2) gives the same answer. For ₹1,00,000 to ₹2,00,000 in 5 years, both return 14.87%.

Reverse CAGR works the other way: you know the rate and want the amount. To reach ₹10,00,000 in 7 years at 12% CAGR, you need about ₹4,52,349 today (10,00,000 ÷ 1.12^7). To see what a sum grows to at a given CAGR, use the Lumpsum Calculator or the Compound Interest Calculator.

CAGR for a SIP: a monthly SIP has a new investment every month, so a single CAGR cannot describe it. Use the XIRR Calculator for SIP or any investment with several deposits and withdrawals, and the SIP Calculator to project a SIP forward.

CAGR needed to multiply your money

Growth3 years5 years7 years10 years15 years20 years
1.5x14.47%8.45%5.96%4.14%2.74%2.05%
2x (double)25.99%14.87%10.41%7.18%4.73%3.53%
3x44.22%24.57%16.99%11.61%7.60%5.65%
5x71.00%37.97%25.85%17.46%11.33%8.38%
10x115.44%58.49%38.95%25.89%16.59%12.20%

CAGR = (end ÷ start)^(1 ÷ years) - 1. Example: doubling in 10 years needs 7.18% a year.

CAGR Calculator formula

CAGR = ((Final / Initial)^(1 / t) - 1) x 100

Final
= value at the end of the period
Initial
= value at the start
t
= period in years

A negative result is a real answer, not an error: it is the annual rate at which the value shrank.

CAGR Calculator: worked example

₹1,00,000 growing to ₹2,50,000

Total change
150%
CAGR if it took 5 years
20.11%
CAGR if it took 10 years
9.6%
CAGR of a fall from ₹1,00,000 to ₹80,000 over 4 years
-5.43%

CAGR Calculator: frequently asked questions

What is the difference between CAGR and absolute return?
Absolute return is the total change: ₹1,00,000 becoming ₹2,00,000 is 100%. CAGR annualises it: over five years that same doubling is 14.87% a year. Absolute return says how much; CAGR says how fast, and only CAGR lets you compare investments held for different lengths of time.
When is CAGR the wrong measure?
When money went in or out during the period. A SIP has twelve entry points a year, so its return is an XIRR calculation, not a CAGR. CAGR also hides volatility completely, so it flatters an investment that had a terrifying middle.
Can CAGR be negative?
Yes, and this calculator returns it rather than refusing. A value that fell from ₹1,00,000 to ₹80,000 over four years has a CAGR of about -5.4%: the constant annual rate of decline.
Why does the calculator refuse a starting value of zero?
Because there is no rate that grows zero into anything. Dividing by zero gives infinity rather than an answer, so the calculator says the starting value must be more than zero instead of showing a meaningless number.
Is a high CAGR always better?
Not on its own. A high CAGR over two years may be a lucky window; the same investment over ten years may look very different. Check the period, check whether the start date was a market low, and check what the path looked like before treating the number as a track record.
What is the CAGR formula?
CAGR = (Ending value ÷ Beginning value)^(1 ÷ Number of years) - 1. For ₹1,00,000 growing to ₹2,00,000 in 5 years: (2,00,000 ÷ 1,00,000)^(1 ÷ 5) - 1 = 0.1487, or 14.87% a year.
How do I calculate CAGR in Excel?
Use =(End/Start)^(1/Years)-1, for example =(B2/B1)^(1/B3)-1, or the built-in function =RRI(Years, Start, End). Format the result as a percentage.
What is a good CAGR for a stock or mutual fund in India?
A good CAGR beats the Nifty 50 index over the same period of five years or more. Also compare it with a bank FD, which pays about 6% to 7%, and with inflation over those years. A fund that trails the index for years is not doing its job, whatever its CAGR.
How long does it take to double money at a given CAGR?
Divide 72 by the CAGR for a quick estimate (the rule of 72). At 12% money doubles in about 6 years; at 8% in about 9 years. The exact figure at 12% is 6.1 years.

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Reviewed by Pradipta Ray, MBA (Finance) · Updated