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CAGR calculator

Find the compound annual growth rate of an investment from its starting and current value.

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Detailed breakdown

CAGR calculator: a quick guide

What is CAGR?

Compound annual growth rate (CAGR) is the steady yearly rate that would take an investment from its starting value to its current value. It turns a total gain into a yearly figure you can compare across investments.

How this calculator works it out

CAGR = (current value ÷ starting value)1 ÷ years − 1

An example

₹1 lakh that grows to ₹2.5 lakh in 7 years has a CAGR of about 13.99% a year. The absolute return over the whole period is 150%.

Good to know

  • CAGR smooths out the ups and downs; the investment did not actually grow 13.99% every single year.
  • It suits a single investment with one start and one end. For SIPs or several deposits and withdrawals, use the XIRR calculator.
How it's calculated

CAGR = (current value ÷ starting value)^(1 ÷ years) − 1. It is the steady yearly rate that would take the starting value to the current value.

Common questions

When should I use XIRR instead?

Use XIRR when you invested in instalments or on several dates, such as a SIP. CAGR is for a single investment.

Last reviewed October 2026 · How we calculate · About Selvayana

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