Compare on a common basis
Annualising returns lets you compare investments with different start dates and holding periods more consistently.
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Calculate your annual growth
Investment details
Enter the beginning and ending values for your investment period.
₹
Must be greater than ₹0
Start date is required
₹
Enter ₹0 or a positive ending value
Must be after start date
Enter your investment details above to see CAGR results
Projection inputs
Choose a starting value, expected CAGR and investment period.
₹
Must be greater than ₹0
Start date is required
%
Must be between negative 99.99% and 1000%
Must be after start date
Enter your inputs above to project future value
CAGR, EXPLAINED
Understand the number behind the growth
CAGR turns the change between two values into one annualised rate, making investment performance easier to compare across different holding periods.
Look beyond the smooth rate
CAGR hides volatility and drawdowns. Use it alongside risk, fees and benchmark performance, not as a complete scorecard.
Choose the right return measure
CAGR suits one starting value and one ending value. For SIPs or irregular cash flows, XIRR is generally more appropriate.
How the calculation works
Years are measured by calendar anniversaries. Each complete anniversary counts as one year; remaining days are divided by the days between that anniversary and the next. Leap day anniversaries use the last valid day of February. XIRR instead uses actual days divided by 365, so annualised rates can differ slightly. A positive investment ending at ₹0 has a CAGR of −100%; its endpoints do not reveal when the loss occurred.
CAGR = ((Ending Value ÷ Starting Value) ^ (1 ÷ Years) − 1) × 100Supported range: amounts up to ₹1,00,00,00,00,00,00,000, periods up to 200 years, and calculated CAGR up to 1,000,000%. Future Value accepts rates from −99.99% to 1000%. Results outside these limits are not displayed.
CAGR questions, answered clearly
What does CAGR actually tell me about an investment?
CAGR converts the change between a starting value and an ending value into one annualised growth rate. Think of it as the steady yearly return that would have produced the same final value if growth had compounded smoothly. It makes long term performance easier to understand, but it does not show what happened in each individual year.
How is CAGR different from absolute return or average annual return?
Absolute return measures the total percentage change without considering how long the investment was held. A simple average of yearly returns ignores the effect of compounding. CAGR accounts for both time and compounding, so it is usually the more useful figure when comparing investments held for several years.
Can CAGR be negative, and how should I interpret it?
Yes. A negative CAGR means the investment finished below its starting value. For example, a negative CAGR of 4% means the value declined at an annualised rate of roughly 4% over the selected period. The actual year to year path may still have included both gains and losses.
Is the investment with the highest CAGR automatically the best?
Not necessarily. A higher CAGR describes stronger historical growth, not the risk taken to achieve it. Compare volatility, drawdowns, fees, taxes, liquidity, investment horizon and the consistency of returns before deciding whether one investment is genuinely better suited to your goal.
How can I compare investments using CAGR fairly?
Use comparable start and end dates, the same treatment of dividends or distributions, and values measured after similar fees and taxes. Also compare each investment with a relevant benchmark and asset class. A five year equity CAGR and a two year fixed income CAGR are not directly comparable without considering their different risks and market conditions.
What important information does CAGR leave out?
CAGR does not reveal volatility, drawdowns, the sequence of returns or how consistently an investment grew. Two investments can produce the same CAGR even if one rose steadily and the other experienced severe swings. It also does not automatically include cash flows, dividends, fees or taxes unless those are reflected in the values you enter.
Why does this calculator use exact dates instead of rounded years?
Exact dates produce a more precise investment duration, especially when the holding period includes partial years. The calculator converts the number of days between your dates into years before annualising the return, avoiding the distortion that can come from rounding a period up or down.
Should I use CAGR to measure SIP or irregular investments?
Usually not. CAGR assumes one starting value and one ending value, so it cannot properly account for money added or withdrawn along the way. For SIPs, redemptions and other investments with multiple dated cash flows, XIRR is generally the more appropriate performance measure.
What should I consider a “good” CAGR?
There is no universal good rate. A meaningful benchmark depends on the asset class, risk level, holding period, inflation and prevailing market conditions. Compare the result with an appropriate index or alternative investment over the same period, then judge whether the extra return adequately compensated you for the extra risk.
Can I use historical CAGR to estimate future value?
You can use it as a scenario, but not as a forecast or promise. Historical CAGR reflects one completed period and future returns may differ materially. When projecting future value, test a conservative base case alongside lower and higher return assumptions rather than relying on a single historical rate.
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This calculator provides estimates for educational purposes only. CAGR is a historical or projected annualized growth metric and does not guarantee future investment returns. Actual investment performance may differ due to market conditions, taxes, fees, and other factors. Please consult a qualified financial advisor before making investment decisions.