CAGR Calculator
Work out the compound annual growth rate between any starting value and ending value — the honest way to compare returns across different holding periods. Live results, the exact formula, and a worked example below.
CAGR measures the past; it is not a forecast of future returns.
Measure an Annualized Return
Type a value or drag the slider — both stay in sync and the result updates instantly. Nothing you enter leaves your browser.
The CAGR Formula, Explained
CAGR = (FV / PV)1/years − 1
- PV — present (initial) value: what the investment was worth at the start.
- FV — final value: what it is worth at the end of the period.
- years — the holding period. Fractions are fine: 30 months = 2.5 years.
The ratio FV/PV is your wealth multiple. Raising it to the power 1/years asks: "what single rate, compounded once a year, turns 1 into this multiple over this many years?" Subtracting 1 converts the multiple back into a rate.
Worked example: ₹1,00,000 → ₹2,50,000 in 6 years
- Wealth multiple = 2,50,000 / 1,00,000 = 2.5×.
- 2.51/6 = 2.50.1667 ≈ 1.1650.
- CAGR = 1.1650 − 1 = 16.50% per year.
Note what CAGR is not: the absolute return here is 150%, and dividing 150% by 6 would give a misleading "25% a year". Simple division ignores compounding — each year's growth builds on the previous year's larger base, so the true annual rate is 16.50%, not 25%. The gap between those two numbers is exactly why fund marketing prefers absolute returns and careful investors prefer CAGR.
CAGR in the wild: real figures from our research desk
Data as of —
From the same June 2026 data file that powers our stock lists (figures approximate, per screener.in and Samco; re-verify before acting):
- Bharti Airtel — five-year profit CAGR of about 24%, the kind of compounding that justifies its premium valuation.
- JK Paper — three-year sales CAGR of roughly 34% on e-commerce packaging demand, per Samco's June 2026 small-cap screen.
- Maharashtra Seamless — three-year net-profit CAGR of about 69% — a reminder that very high CAGRs usually come from small bases and rarely persist.
And on the downside: with TCS down ~38% and ITC down ~34% over the year to June 11, 2026, one-year CAGRs for several index heavyweights are sharply negative. CAGR is symmetric — it tells the truth in both directions.
CAGR vs Absolute Return vs XIRR
| Measure | What it tells you | Use it when | Watch out for |
|---|---|---|---|
| Absolute return | Total % change over the whole period | Quick gut-check on a single holding | Meaningless without the time period attached |
| CAGR | One smoothed annual rate between two points | Comparing investments held for different periods; single lumpsum in, single value out | Hides volatility; breaks down with multiple cash flows |
| XIRR | Annualized return across many dated cash flows | SIPs, top-ups, partial redemptions — your real portfolio | Needs every cash flow with its date (Excel/Sheets XIRR function) |
Rule of thumb: one purchase → CAGR. Many purchases → XIRR. Projecting forward instead of measuring backward → the SIP or lumpsum calculator.
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CAGR Calculator FAQs
What is the difference between CAGR and absolute return?
Absolute return is the total percentage change over the whole holding period — ₹1,00,000 becoming ₹2,50,000 is a 150% absolute return. CAGR converts that into a single annual rate: 150% over 6 years works out to 16.50% per year, not 25%. CAGR is the only fair way to compare investments held for different lengths of time.
When should I use XIRR instead of CAGR?
CAGR assumes one cash flow in and one cash flow out. If you invested multiple times — a SIP, top-ups, partial withdrawals — CAGR misstates your return because each rupee was invested for a different period. XIRR (available in Excel and Google Sheets) handles dated multiple cash flows and is the correct measure for SIP portfolios.
What is a good CAGR for Indian stocks or mutual funds?
Context matters. Over long periods the Nifty 50 has compounded in the low double digits, so a fund delivering 12–15% CAGR over 10 years has beaten most alternatives. Individual businesses can compound faster — our June 2026 data file notes Bharti Airtel's five-year profit CAGR of about 24% per screener.in — but high past CAGRs do not persist automatically, and short-period CAGRs can be deeply negative, as the 2025–26 correction shows.
Can CAGR be negative?
Yes. If the ending value is below the starting value, CAGR is negative. For example, a stock that fell from ₹1,000 to ₹620 over one year — similar to TCS's roughly −38% one-year move in our June 11, 2026 data — has a −38% CAGR for that period. The calculator handles this and shows the negative rate.
What are the limitations of CAGR?
CAGR smooths the journey into a straight line: a fund that went +60% then −20% and one that did +13% twice both show similar CAGRs, but very different risk. It also ignores volatility, ignores interim cash flows like dividends unless you include them in the ending value, and says nothing about whether the rate will repeat. Use it to compare the past, never to project the future blindly.