CAGR Calculator

CAGR, the compound annual growth rate, is the one steady yearly rate that would take a starting value to an ending value over a period. It smooths out the ups and downs in between, which makes it the fair way to compare investments held for different lengths of time. This calculator gives the CAGR alongside the total change, so a large total over many years is not mistaken for a high yearly return.

1. Enter the value at the start, such as what you paid for an investment.
2. Enter the value at the end, such as what it is worth now.
3. Enter the number of years between them. Part years such as 2.5 are fine.
4. Read the CAGR, the total change and how many times the value has multiplied.

• CAGR ignores what happened in between. An investment that fell 40% and then recovered can show the same CAGR as one that rose steadily.
• It assumes no money was added or taken out during the period. For regular investments such as a SIP, the right measure is XIRR, which this tool does not calculate.
• Dividends and interest paid out along the way are not included unless you add them to the ending value.
• The calculation happens in your browser and nothing is sent anywhere. The values appear in the page address so a link reopens the same comparison.

The total return is the whole change over the period: ₹1 lakh growing to ₹2 lakh is a 100% total return. CAGR spreads that over the years. Over 5 years that 100% is about 14.87% a year, because each year’s growth builds on the last.

Yes. If the ending value is lower than the start, the CAGR is negative. ₹200 falling to ₹100 over two years is about −29.29% a year.

That gives a simple average, which overstates growth. It ignores that growth compounds, so 100% over 5 years would look like 20% a year, when a steady 14.87% a year gets you to the same place.