Invest • Performance
CAGR Calculator
Calculate the compound annual growth rate between an initial value and a final value, and learn when CAGR is useful — and when it can mislead.
India-focusedFree calculatorIllustration only
CAGR Calculator
CAGR—
Total growth—
Value multiple—
CAGR in plain English
CAGR answers: “What constant annual growth rate would turn the starting value into the ending value over this period?”
Important: CAGR smooths the journey. It does not mean the investment actually grew by the same percentage every year.
When CAGR is useful
- Comparing long-term growth between investments.
- Understanding business or portfolio growth over a multi-year period.
- Converting a start/end value into an easy annualised growth figure.
When CAGR is not enough
If you made multiple deposits or withdrawals at different dates, CAGR based only on beginning and ending values can hide the effect of cash-flow timing. For investments with irregular cash flows, an XIRR-style approach can be more appropriate.
| Metric | Best for |
|---|---|
| CAGR | One start value → one end value over time. |
| XIRR | Multiple cash flows on different dates. |
| Absolute return | Simple total gain/loss without annualising. |
Frequently Asked Questions
Can CAGR be negative?
Yes. If the final value is below the starting value, CAGR is negative.
Does CAGR show volatility?
No. Two investments can have the same CAGR while having very different year-to-year volatility.
Important: This calculator is for educational illustration only. Actual outcomes depend on product terms, taxes, fees, market returns, timing and individual circumstances. Verify important financial decisions with the relevant institution/professional.
Fintaxtical • Understand Money. Decide Better.