CAGR calculator
₹1,00,000 that grew to ₹3,10,585 over 10 years compounded at 12.00% a year — even though the absolute gain is 210%. CAGR is the steady annual rate that would have produced the same journey, which is what makes two investments of different lengths comparable.
Start, end, and how long
The annual rate
What you investWhat compounding adds
| Year | Invested | Returns | Value at year end |
|---|---|---|---|
| 1 | ₹1,00,000 | ₹12,000 | ₹1,12,000 |
| 2 | ₹1,00,000 | ₹25,440 | ₹1,25,440 |
| 3 | ₹1,00,000 | ₹40,493 | ₹1,40,493 |
| 4 | ₹1,00,000 | ₹57,352 | ₹1,57,352 |
| 5 | ₹1,00,000 | ₹76,234 | ₹1,76,234 |
| 6 | ₹1,00,000 | ₹97,382 | ₹1,97,382 |
| 7 | ₹1,00,000 | ₹1,21,068 | ₹2,21,068 |
| 8 | ₹1,00,000 | ₹1,47,596 | ₹2,47,596 |
| 9 | ₹1,00,000 | ₹1,77,308 | ₹2,77,308 |
| 10 | ₹1,00,000 | ₹2,10,585 | ₹3,10,585 |
What CAGR actually tells you
CAGR is a smoothing device. It answers: what constant annual rate, compounded, would have taken this investment from its start value to its end value in this many years?
Its value is comparability. "Made 210%" is meaningless without a period — over ten years that is respectable, over thirty it is poor. CAGR normalises both to one figure you can line up against a deposit rate or another fund.
Its limitation is that it hides everything about the ride. An investment that went +80%, −45%, +90% can post the same CAGR as one that ticked up 12% every year. Same number, very different experience, and materially different risk.
Do not use CAGR on a SIP
This is the common mistake
CAGR assumes one investment at one moment. A SIP is dozens or hundreds of investments across years. Feeding "total invested" in as the start value pretends all of it arrived on day one, which understates your return substantially.
For a SIP, use the XIRR calculator. It is built for exactly this and it is what your fund statement uses.
Before you rely on this
An estimate, not a forecast
This is arithmetic applied to assumptions you chose. Mutual funds carry market risk, returns are not guaranteed, and past performance does not indicate future results. Nothing here is personalised advice — for decisions of any size, speak to a SEBI-registered investment adviser.
Questions people actually ask
What is a good CAGR?
Only meaningful relative to the alternative and the risk taken. Broad Indian equity indices are commonly cited around 11–13% over long periods; deposits sit near 6–7%; inflation has averaged close to 6%.
A 9% CAGN on an equity fund over fifteen years is unremarkable. The same 9% on a debt portfolio would be excellent. The number alone is not a verdict.
Is CAGR the same as annualised return?
For a single investment with one entry and one exit, yes — they are the same thing. For anything with multiple cash flows, "annualised return" usually means XIRR, and CAGR does not apply.
Can CAGR be negative?
Yes, whenever the end value is below the start value. The formula handles it and the calculator will show it.
It cannot handle a start value of zero or below, because there is no meaningful growth rate from nothing — the calculator returns a dash rather than a fabricated figure.