Calculator
CAGR calculator
Your investment doubled in 5 years — but what did it earn per year? One number answers.
20.11%
compounded annual growth rate
- Absolute return150%
- Money multiplied2.5×
Hover the curve for values along the path.
CAGR smooths volatility into a single yearly rate — two investments with the same CAGR can have very different rides.
What this calculator answers
₹1,00,000 growing to ₹2,50,000 over 5 years is a CAGR of 20.11%, an absolute return of 150% and a 2.5× multiple. Enter the starting value, ending value and years held to get the annualised rate of return.
How it is calculated
CAGR = (ending value ÷ starting value)^(1 ÷ years) − 1, reported to two decimals; the absolute return and the multiple are shown alongside it.
CAGR is a smoothed rate that reproduces the same end value — it is not any single year's actual return.
Common questions
Why is CAGR lower than the absolute return?
Absolute return ignores time; CAGR spreads the same gain across every year. A 150% total gain over five years works out to about 20% a year.
Does CAGR show my actual yearly returns?
No. It is the single steady rate that reproduces the end value, so a fund that fell in one year and rose sharply in another can show the same CAGR as a steadier one.
Can I use CAGR for a SIP?
CAGR suits a one-time investment with a start and end value. For monthly investments use the SIP calculator, because each instalment enters at a different time and price.
Source & freshness
- Source
- Deterministic formula in lib/calculators.ts
- Timeliness
- Static-verified
- Method
- calculated
- Note
- Illustrative projection from your inputs — not a market quote.