CAGR calculator
Enter what you started with, what it is worth now and how many years it took.
How it is calculated
CAGR = (ending value ÷ starting value)1 / years − 1. It is the single yearly rate that, compounded, turns the starting value into the ending value, ignoring the ups and downs in between. It is right for one investment made at one time; for SIPs and investments made on different dates, use the XIRR calculator.
Using the result well
CAGR suits a single investment held from one date to another. For a SIP or several top-ups, use XIRR, which accounts for the dates on which money went in.
A high CAGR over a short period says little. A fund that rose 40% in one year can show a striking one-year CAGR and an ordinary five-year one; compare funds over the same three- or five-year period, against their index.
Our fund pages show each fund's 3-year and 5-year CAGR next to its index's, and how often it stayed ahead over every rolling three-year period, which is a steadier view than any single period.
Worked example
₹1 lakh growing to ₹2.5 lakh in 7 years: (2.5)1/7 − 1 = 13.99% a year. The absolute return is 150%, but CAGR is what lets you compare it with a fund or an index over the same 7 years.
Common questions
What is CAGR?
Compound annual growth rate: the steady yearly return that turns a starting value into an ending value over a period. A fund's 3-year or 5-year return is usually quoted as a CAGR.
What is the difference between CAGR and absolute return?
Absolute return is the total gain as a percentage, ignoring time. CAGR spreads it over the years, so investments held for different lengths of time can be compared.
CAGR or XIRR?
CAGR for a single investment made once. XIRR when money went in or came out on different dates, such as a SIP; it gives each rupee credit only for the time it was invested.
How should I judge a fund's CAGR?
Against its own index and its peers over the same period: our fund pages show each fund's CAGR next to its index's total-return CAGR.
Illustrations only, not investment or tax advice. Mutual fund returns are not guaranteed and can be negative; the assumed return is yours to choose. Talk to us before acting on a tax estimate.
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