CAGR Calculator

Measure the true annualised growth rate of any investment.

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The short answer

₹1 lakh growing to ₹1.8 lakh in 5 years is a 12.5% CAGR — the smooth yearly rate that gets you there. CAGR is the only fair way to compare investments held for different periods; raw percentages lie by ignoring time.

How to use the cagr calculator

  1. Enter starting and ending values.
  2. Enter the number of years.
  3. Get the annualised growth rate.

CAGR Calculator — FAQs

What is CAGR?

Compound Annual Growth Rate — the constant yearly growth rate that would take an investment from start to end value. It smooths out year-to-year volatility.

CAGR vs absolute returns?

Absolute return says ‘+80%’; CAGR says ‘+12.5%/year for 5 years’. The second lets you compare against FDs, inflation and other investments fairly.

What is a good CAGR?

For Indian equity: 12–15% over long periods is strong, 10–12% is reasonable for planning. Above 20% sustained usually means high risk or luck.

Does CAGR show volatility?

No — that’s its blind spot. Two investments with the same CAGR can have wildly different ride smoothness. Check max drawdown too.

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