CAGR tells you the average yearly growth rate between two points in time.
About this calculator
CAGR tells you the average yearly growth rate between two points in time. It is the standard way to quote mutual fund returns, compare stock performance, or report business revenue growth in an annual report. Unlike a simple average of yearly returns, CAGR accounts for compounding — money earned in early years also grows in later years.
Enter what you started with, what you ended with, and how many years passed. The calculator returns CAGR, total gain in rupees, total return as a percentage, simple average return per year (for comparison), and an estimate of years to double at that CAGR using the rule of 72.
CAGR hides volatility. A fund that gained 80% in year 1 and lost 30% in year 2 can show a decent CAGR even though the ride was rough. For forward planning use the [[compound-interest]] calculator to project future values from a rate. The [[rule-of-72]] calculator gives a quick doubling-time estimate. The [[roi]] calculator shows total return without smoothing across years.
Common uses
- Compare mutual fund or stock performance over 3, 5, or 10 years
- Report company revenue or profit growth in investor presentations
- Benchmark a property sale price against the original purchase years ago
- Evaluate whether a business unit hit its growth target
- Homework — convert beginning and ending values into one annual rate
Frequently asked questions
What is the CAGR of ₹1 lakh growing to ₹2 lakh in 5 years?
CAGR = (200000/100000)^(1/5) − 1 ≈ 14.87% per year. Total return is 100%, but the equivalent smooth annual rate is just under 15% because compounding applies each year.
How is CAGR different from average annual return?
Average return adds up each year
Can CAGR be used for periods shorter than one year?
Yes. Enter fractional years — 0.5 for six months. The formula still works: (end/begin)^(1/n) − 1. Results annualize the growth rate, so a 10% gain in six months shows roughly 21% CAGR.
What CAGR do Indian equity indices typically show long term?
Nifty 50 has delivered roughly 11–13% CAGR nominal over multi-decade spans, before taxes and fees. Individual stocks and funds vary widely. Use CAGR to compare your actual portfolio against that benchmark over the same window.
Why does the calculator show years to double?
At a steady CAGR, money doubles in about 72 divided by the rate — the rule of 72. At 12% CAGR, doubling takes roughly 6 years. It is a quick sanity check on whether the computed rate matches your intuition.