CAGR Calculator
CAGR — compound annual growth rate — is the steady yearly rate at which an investment would have to grow to get from its starting value to its ending value. It smooths out ups and downs into a single, comparable figure, so you can compare a stock, a fund, a business’s revenue or a bank deposit on equal terms. This calculator finds the CAGR from a start value, end value and period; the future value if you know the rate; or the number of years needed to reach a target at a given rate. CAGR describes the past and is not a forecast.
How to use the cagr calculator
- Choose what you want to find.
- Enter the starting value, and the end value or rate as the option requires.
- Enter the number of years.
- Compare the CAGR with other investments and with inflation.
Formula
CAGR = (ending value ÷ starting value)1 ÷ years − 1. Future value = starting value × (1 + rate)years. Years = ln(ending ÷ starting) ÷ ln(1 + rate).
Worked examples
Doubling in 5 years
₹1 lakh growing to ₹2 lakh in 5 years is a CAGR of 14.87% — more than a quick “20% a year” intuition would suggest is needed.
Future value
₹1 lakh at 12% a year for 10 years becomes ₹3,10,584.82.
How long to triple?
At 12% a year, ₹1 lakh takes 9.694 years (9 years 8 months) to reach ₹3 lakh.
Practice problems
Try these yourself first, then check your answer. The answers come from the calculator above.
- An investment grew from ₹2.5 lakh to ₹6 lakh in 7 years. What is the CAGR?
Show answer
CAGR: 13.322%
Common mistakes to avoid
- Using simple average returns instead of CAGR. Averages overstate growth when returns vary.
- Treating CAGR as a promise of future returns.
- Comparing CAGRs over different periods without caution.
- Ignoring cash flows. For regular investments such as SIPs, use XIRR-style measures, not CAGR.
- Forgetting inflation and tax.
Frequently asked questions
How do you calculate CAGR?
Divide the ending value by the starting value, raise to the power 1/years and subtract 1. The calculator shows the working.
What is a good CAGR?
It depends on the asset and risk. Compare against inflation, bank deposits and similar investments.
Is CAGR the same as average return?
No. CAGR is the constant rate that would give the same end value; the arithmetic average of annual returns is usually higher.
Can I use CAGR for SIPs?
Not directly, because money is added over time. Use an internal-rate-of-return method for that.
Is this advice?
No. It is a calculation tool.
By Thomas M, Registered Investment Adviser (South Carolina), who launched his own financial advisory firm in 2010. Last reviewed September 26, 2026. Found a mistake? Tell us; see our editorial policy.