Calculators
CAGR Calculator
Find the compound annual growth rate (CAGR) of an investment, the future value at a growth rate, or the years needed to reach a target.
What CAGR tells you
If a fund went from ₹1 lakh to ₹2.5 lakh in 5 years, the total return is 150%, but that does not tell you how it did each year. CAGR does: about 20.1% a year. It makes investments held for different lengths of time easy to compare.
What you can do with the CAGR Calculator
- Three modes: Find CAGR, future value or years needed.
- FD check: See if you beat a 7% fixed deposit.
- Year-by-year chart: The value each year at a steady rate.
Three questions in one tool
Find CAGR works out the growth rate from what you put in and what you have now. Future value shows what a sum could become at a rate you choose. Years needed tells you how long a sum takes to reach a target, such as ₹1 lakh becoming ₹10 lakh.
CAGR versus absolute return
Absolute return is simply how much the value grew in total, in percent. It ignores time, so 50% in 2 years and 50% in 10 years look the same. CAGR spreads the growth over the years, so the first is about 22.5% a year and the second only about 4.1%.
When CAGR is not the right measure
CAGR suits a single amount invested once. For a SIP or any money added over time, use XIRR instead, because each instalment was invested for a different length of time. CAGR also hides the ups and downs along the way.
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Frequently Asked Questions
What is a good CAGR?
It depends on the asset. As a rough guide, a CAGR above the rate of inflation means your money grew in real terms, and one above what a fixed deposit pays means the risk was rewarded. Compare a fund with its benchmark index over the same years.
Can CAGR be negative?
Yes. If the ending value is less than the starting value, CAGR is negative and shows the average yearly loss.
Can I use CAGR for a SIP?
Not accurately. A SIP invests a new amount every month, so use XIRR, or the SIP Calculator here to project a SIP.
How do I calculate CAGR?
Divide the ending value by the starting value, raise the result to the power of 1 divided by the number of years, then subtract 1. For ₹1 lakh growing to ₹2.5 lakh in 5 years: 2.5^(1/5) − 1 = 0.2011, or 20.11% a year.
What is the difference between CAGR and absolute return?
Absolute return is the total growth in percent and ignores time. CAGR is the yearly rate that gives the same growth, so you can compare investments held for different lengths of time.
What is the difference between CAGR and XIRR?
CAGR works for one amount invested once. XIRR works when money goes in or comes out at different dates, such as a SIP or extra top-ups. For a single lump sum the two give the same answer.
Can I use months instead of years?
Yes. The years box takes halves, so 2.5 means two and a half years. For other periods, divide the number of months by 12.
How long will my money take to double?
Pick Future value and look at "Doubles in about". At 12% a year money doubles in about 6.1 years. The rule of 72 gives a quick estimate: 72 divided by the rate.
Is a higher CAGR always better?
Not on its own. A higher CAGR often came with bigger swings along the way, and past growth does not promise future growth. Compare funds over the same period and against their benchmark.
Is my data saved?
No. Everything is worked out in your browser and nothing you enter is sent anywhere.
Read the guide
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