CAGR Calculator – Annualised Growth Rate
Calculate the compound annual growth rate between a starting and ending value. CAGR smooths the path and does not show interim losses.
Reviewed by Kshitij Jain, Principal Officer · SEBI Investment Adviser INA000022172 · Last reviewed: · Methodology: India-first (FY 2026-27 · Budget 2024 LTCG).
₹5.00 L
₹10 L
Compound annual growth rate
14.87% a year
CAGR is the single smooth annual rate that turns ₹5,00,000 into ₹10,00,000 over 5 years. It hides the path, volatility and cash flows between those dates.
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How to use the CAGR calculator
Find the single annual rate that would compound a starting value into an ending value over a chosen period.
- Enter the starting valueUse the portfolio or asset value at the beginning of the measurement period.
- Enter the ending valueUse a comparable value after accounting for distributions consistently.
- Enter the period in yearsUse tenths of a year for a part-year period, such as 2.5 years. A materially wrong period produces a materially wrong annualised rate.
- Check for cash flowsIf money moved in or out during the period, use XIRR rather than CAGR.
What CAGR answers
CAGR asks: what constant annual rate would turn the starting amount into the ending amount over this period? It makes results with different holding periods easier to compare, but it describes endpoints rather than the journey.
For example, a portfolio that doubles in five years has a CAGR of about 14.87%, not 20%. Compounding means the same percentage applies to a growing base each year.
When CAGR is the wrong measure
CAGR assumes one initial value, one final value and no intervening investor cash flows. A SIP, withdrawal plan or portfolio with irregular additions needs a cash-flow-aware measure such as XIRR. Consistent treatment of dividends and distributions is also essential.
Do not mistake smoothness for safety
A displayed CAGR does not show the worst fall, time spent recovering, risk taken, fees, tax or inflation. Pair it with rolling returns, drawdown and an appropriate benchmark over the same dates before drawing a conclusion.
A higher CAGR is not automatically a better outcome if it required risk the investor could not tolerate or depended on a favourable start and end date. Compare like with like and judge the measure alongside the goal it was meant to serve.
This calculator is educational and uses the inputs shown. Read the related terms in the nyvo money glossary and consider regulated advice for decisions that depend on your full finances.
Frequently asked questions
What does CAGR hide?
It hides every fluctuation between the start and end. Two investments can have the same CAGR but very different drawdowns, volatility and investor experience.
When should I use XIRR instead?
Use XIRR when there are dated cash flows such as SIP instalments, withdrawals or irregular additions. CAGR is suitable for one beginning value and one ending value.
Is CAGR the same as average annual return?
No. The arithmetic average of yearly returns does not account for compounding. CAGR is the geometric annual rate connecting two values.
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OpenCalculators are educational estimates, not guarantees or personalised recommendations. Investment in securities markets is subject to market risk. Past performance does not guarantee future returns. Verify current product, tax and regulatory information before acting.