CAGR Calculator
Find compound annual growth rate between two portfolio values.
CAGR calculator for investments
Compound Annual Growth Rate (CAGR) tells you the smooth yearly return that would take an investment from its starting value to its ending value over a period. It is widely used to compare mutual funds, stocks, and portfolios on equal footing, even when prices swung up and down in between.
How to use this calculator
Enter the initial value at the start of the period. For a mutual fund, use the amount invested or the NAV-based value at the start date.
Enter the final value at the end date. Include reinvested dividends only if they stayed in the same investment. Comparing a fund with dividend payout to one with reinvestment needs care because cash taken out lowers the final value.
Set the period in years. Partial years are allowed (for example 3.5 years for a 42-month holding). CAGR annualises the growth path between the two points. Round partial years to one decimal if your broker statement shows months held.
Use CAGR to compare two funds or stocks over the same window. It ignores volatility in between, so two investments with the same CAGR may have felt very different to hold.
Do not use CAGR for SIPs with monthly flows. SIP returns need XIRR because cash enters at different dates. Use this tool for lumpsum-style holdings or end-to-end portfolio values. For recurring investments, compare against our SIP or step-up SIP calculators instead.
CAGR formula
CAGR = (Final Value / Initial Value)^(1 / n) − 1 n = number of years Multiply by 100 for percentage. Example: ₹1 lakh grew to ₹1.76 lakh in 5 years. CAGR = (1.76)^(1/5) − 1 ≈ 12% per year. Absolute gain was 76%, but CAGR is the per-year compound rate.
Frequently Asked Questions
CAGR vs absolute return?
Absolute return is total gain over the whole period. CAGR expresses the same journey as an annual rate, which makes different tenures comparable.
CAGR vs XIRR?
CAGR fits one starting and one ending value. XIRR fits multiple cash flows on different dates, such as monthly SIPs.
Can CAGR be negative?
Yes. If final value is below initial value, CAGR is negative, showing average annual loss.
Does CAGR include dividends?
Only if dividends were reinvested and remain inside the final value you enter. Cash dividends withdrawn lower final value and CAGR.
Why CAGR for fund factsheets?
AMCs show point-to-point CAGR over 1, 3, 5, and 10 years so investors can compare funds on standard horizons.
CAGR for volatile stocks?
A stock can have high CAGR between two lucky dates but large drawdowns in between. Check max fall separately before investing.
Can I use CAGR for FDs?
Yes for a single deposit held to maturity. Bank quoted rates are usually annualised already; CAGR should match for fixed-rate FDs.
Project future value from CAGR?
Future value ≈ Initial × (1 + CAGR)^years. This calculator solves for CAGR when you know both values; rearrange if you need projection.
Same CAGR as average return?
No. Simple average return adds yearly percentages and divides by years. CAGR accounts for compounding and is the standard for comparing multi-year investments.
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