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Finance & Investment · Returns

CAGR Calculator

Find the Compound Annual Growth Rate (CAGR): the steady yearly rate that turns a starting value into an ending value over a period — plus total return, growth multiple and how long the money takes to double at that pace.

Your inputs

Quick start — try a typical case

₹ 1 lakh

₹ 2.5 lakh

years

Your result Live

CAGR

20.11%

₹1,00,000 → ₹2,50,000 over 5 years

Total (absolute) return
150.00%
Gain
₹1,50,000
Growth multiple
2.5×
Time to double at this rate
3.8 years
Value on a steady CAGR path

How this is calculated

CAGR = (End ÷ Start)^(1 ÷ years) − 1

End
Ending value
Start
Starting value
years
Time period in years (months ÷ 12)

CAGR smooths a multi-year change into one steady annual rate, so investments held for different lengths of time can be compared fairly. It describes the start and end points only — the actual year-to-year path may have been much bumpier.

Assumptions & sources

  • No money was added or withdrawn in between. If it was, use the XIRR Calculator, which accounts for the dates and amounts of every cash flow.
  • The period is used exactly as entered; months are converted to years by dividing by 12.
  • Taxes, fees and dividends paid out are not included unless they are reflected in the ending value.
  1. 1Investments (Bodie, Kane & Marcus), chapters on returns, compounding and the time value of money — McGraw-Hill
  2. 2CFA Program Curriculum — Quantitative Methods: The Time Value of Money — CFA Institute
  3. 3Investor education material — SEBI — Securities and Exchange Board of India

Calculator ID FIN-RET-CAGR-001 · version 2.0.0

Common questions

How is CAGR different from absolute return?

Absolute return is the total change (₹1 lakh → ₹2.5 lakh is +150 %). CAGR spreads it across the years as a compounding rate (+20.11 % a year over 5 years). Two investments with the same absolute return can have very different CAGRs if one took longer.

When should I use XIRR instead of CAGR?

Use XIRR when money went in or came out at different times — SIPs, top-ups, partial withdrawals. CAGR only works for a single starting amount and a single ending value.

What does the time to double mean?

It is how many years money takes to double at this CAGR: ln 2 ÷ ln(1 + CAGR). The 'rule of 72' (72 ÷ rate) is a quick mental approximation of the same thing.