Mutual Fund Compare

CAGR calculator

Written and reviewed by Omm · Last reviewed · General information, not investment advice

CAGR is the steady yearly rate at which an investment would have grown from its starting value to its ending value. Enter the two values and the number of years.

Between 1 and 10000000000

Between 0 and 10000000000

years

Between 0.1 and 60

CAGR

+9.60%

Absolute return

+150.00%

Growth multiple

2.50x

How it works

CAGR = (Ending value ÷ Starting value)^(1 ÷ years) − 1

CAGR smooths out the ups and downs and gives one yearly rate, which makes investments held for different lengths of time comparable. It is the same measure used for the 1, 3, 5 and 10-year returns in the screener.

CAGR assumes one lump sum invested at the start. For regular investments such as a SIP, the right measure is XIRR, which accounts for the date of every instalment.

Example. An investment that grows from ₹1,00,000 to ₹2,50,000 in 7 years has a CAGR of +13.99%.

Read the guide: CAGR vs XIRR vs absolute return: which one to use?.

Frequently asked questions

What is CAGR?

Compound Annual Growth Rate is the constant yearly rate at which a value would have to grow to get from its starting amount to its ending amount over a period of time.

What is the difference between CAGR and absolute return?

Absolute return is the total percentage change over the whole period, with no regard for how long it took. CAGR converts that to a yearly rate, so a 100% gain over 3 years and over 10 years can be compared fairly.

When should I use XIRR instead of CAGR?

Use CAGR for a single investment with one start and one end value. Use XIRR when money goes in or out at different dates, for example a monthly SIP.

Can CAGR be negative?

Yes. If the ending value is lower than the starting value, the CAGR is negative.

How do I calculate the return on a SIP or on money invested at different times?

CAGR does not work when money goes in on several dates. Use XIRR, which takes the date of every investment into account. The XIRR calculator on this site does this.

What is the CAGR formula in Excel or Google Sheets?

Type =(end/start)^(1/years)-1 with your own cell references, and format the cell as a percentage. The function =RRI(years, start, end) gives the same answer.

Sources

Rules, rates and definitions on this page come from these official sources. Check the current position there before you decide.

Other calculators