Skip to content
RupeeTree

CAGR Calculator

Find the steady yearly growth rate of an investment, what it was after inflation, and whether it beat a rate you choose.

years

Part-years are fine, e.g. 3.5 for three and a half years.

Used to work out your return after rising prices.

For example an FD rate, to see if your investment did better.

CAGR

13.99%

Total gain
₹1,50,000₹1.5 lakh
Absolute return
150%
Money multiplied
2.5×
CAGR after 5% inflation
8.56%
Value at 7% a year
₹1,60,578₹1.61 lakh

Your investment did ₹89,422 better than 7% a year.

Your investment against 7% a yearYour investmentAt 7% a year

Year-by-year value at this CAGR

YearValue at this CAGRGainAt 7% a year
Year 1₹1,13,985₹13,985₹1,07,000
Year 2₹1,29,926₹29,926₹1,14,490
Year 3₹1,48,097₹48,097₹1,22,504
Year 4₹1,68,808₹68,808₹1,31,080
Year 5₹1,92,417₹92,417₹1,40,255
Year 6₹2,19,327₹1,19,327₹1,50,073
Year 7₹2,50,000₹1,50,000₹1,60,578

How to use this calculator

  1. Enter what the investment was worth at the start and what it is worth now.
  2. Enter how many years you held it — part-years like 3.5 are fine.
  3. Optionally set inflation, and a rate to compare with such as an FD rate.
  4. Read the CAGR, the real CAGR after inflation, and whether you beat the comparison rate.

How CAGR is calculated

CAGR = (Final value ÷ Starting value)1 ÷ years − 1

The real CAGR removes inflation:

Real CAGR = (1 + CAGR) ÷ (1 + inflation) − 1

Example: ₹1,00,000 growing to ₹2,50,000 in 7 years is a CAGR of 13.99%. After 5% inflation that is 8.56% a year. At 7% a year the same ₹1,00,000 would have grown to ₹1,60,578, so this investment did ₹89,422 better.

Frequently asked questions

What is CAGR?

CAGR (compound annual growth rate) is the steady yearly rate that would take an investment from its starting value to its final value over the period. It turns an uneven journey into one comparable number.

How is CAGR different from absolute return?

Absolute return is the total growth, ignoring time. ₹1,00,000 becoming ₹2,50,000 is an absolute return of 150% — but spread over 7 years that is a CAGR of 13.99% a year. CAGR lets you compare investments held for different lengths of time.

What does doubling my money mean in CAGR terms?

Doubling in 5 years is a CAGR of 14.87%. The "rule of 72" gives a quick estimate: 72 ÷ CAGR ≈ years to double.

What is real (inflation-adjusted) CAGR?

It is your growth after rising prices. A CAGR of 13.99% with 5% inflation is a real CAGR of 8.56% — the rate at which your buying power actually grew.

Is CAGR the right measure for a SIP?

Not on its own. CAGR assumes one investment at the start. For a SIP or any series of investments at different dates, XIRR is the right measure because it accounts for when each amount went in.

Does CAGR tell me how risky an investment was?

No. Two investments with the same start and end values have the same CAGR, even if one rose steadily and the other crashed and recovered. Look at the yearly ups and downs too.

Related calculators

Last updated . For information only — not financial advice. Check the final figures with your lender or bank.