Enter the beginning value, the ending value and the time between them. This CAGR calculator shows the steady yearly growth rate that links the two, along with the absolute return and the doubling time.
CAGR Calculator
Works for an investment, a salary, a business metric or any value that grew or shrank over time.
CAGR is an effective annual rate: the steady yearly growth that carries the beginning value to the ending value.
Your result in detail
| Item | Value |
|---|
If this CAGR continued (illustrative, not a forecast)
| Years from now | Projected value (₹) |
|---|
Illustrative calculation. Past growth does not predict future returns.
A friend says her investment doubled in six years. Fair enough, but how fast is that per year? A CAGR calculator answers in seconds: doubling in six years works out to about 12.25% a year, not the 16.7% you get by dividing 100% by six.
How do you use this CAGR calculator in 3 steps?
- Enter the beginning value, such as what you first invested.
- Enter the ending value, such as what it is worth now.
- Enter the time between the two, in years and months, then read the CAGR, the absolute return and the doubling time.
Use Copy result to save a summary, or Share on WhatsApp to send it to a friend. Stock Charcha keeps the simple average right beside the CAGR so you can see how far apart the two numbers sit.
What is CAGR and how does the formula work?
CAGR, the compound annual growth rate, is the single steady yearly rate that would take the beginning value to the ending value. It ignores the ups and downs along the way.
CAGR = (Ending value ÷ Beginning value)1 ÷ years − 1
It is an effective annual rate, which means compounding is already built in. The calculator converts months into a fraction of a year, so 5 years and 6 months uses 5.5.
What does a worked example look like?
Say ₹1,00,000 grows to ₹2,50,000 over 5 years. These figures are illustrative.
| Item | Value |
|---|---|
| Absolute return | 150.00% |
| CAGR (effective annual) | 20.11% |
| Simple average per year | 30.00% |
| Money multiple | 2.50x |
| Doubling time at this CAGR | 3.8 years |
The money grew 2.5 times, yet the CAGR is only about 20.11% a year, well below the 30% the simple average suggests.
Why is the simple average return misleading?
Dividing total growth by the years ignores compounding. Here is the same doubling of money stretched over different periods.
| Time taken to double | CAGR | Simple average |
|---|---|---|
| 3 years | 25.99% | 33.33% |
| 6 years | 12.25% | 16.67% |
| 10 years | 7.18% | 10.00% |
The longer the period, the wider the gap. A simple average makes a ten-year doubling look like 10% a year when the true rate is closer to 7.2%.
Does the Rule of 72 agree with the CAGR calculator?
The Rule of 72 says doubling time is about 72 divided by the yearly rate. Here is how it compares with the exact figure.
| CAGR | Exact doubling time | Rule of 72 |
|---|---|---|
| 6% | 11.90 years | 12.0 years |
| 8% | 9.01 years | 9.0 years |
| 12% | 6.12 years | 6.0 years |
| 15% | 4.96 years | 4.8 years |
The shortcut is close for everyday rates and drifts a little at higher ones. Use the calculator when you need the exact figure.
What happens to CAGR when a value falls?
CAGR can be negative. If ₹1,00,000 shrinks to ₹80,000 in 3 years, the CAGR is −7.17% a year. There is also a trap in swings: a 20% fall followed by a 25% rise brings you back to the start, so the CAGR is 0%. The simple average of the two years would claim a 2.5% yearly gain that never happened.
How do you compare two investments with the CAGR calculator?
Run the CAGR calculator once for each option, using the same unit of time. Fund X turns ₹1,00,000 into ₹2,00,000 in 5 years, while Fund Y turns it into ₹2,60,000 in 7 years. Y looks bigger, but its CAGR is 14.63% against 14.87% for X.
Seven years of growth beat five years on total rupees, yet X grew faster each year. That is the comparison a raw gain cannot show, and it is why Stock Charcha puts CAGR first.
What does this CAGR calculator leave out?
At Stock Charcha we treat CAGR as a way to compare, not to predict. It assumes one beginning value and one ending value, with no money added or withdrawn in between. A SIP or any series of deposits needs XIRR instead. It also ignores tax, charges and inflation, and it depends on your start and end dates, so a flattering window can hide a rough ride.
Past growth does not predict the future. For index values, see NSE, and for fund data, AMFI. Mutual fund investments are subject to market risks. Read all scheme related documents carefully before investing.
Where should you go after using the CAGR calculator?
To see what CAGR means after prices rise, use the real return calculator. The power of SIP in Indian equities shows compounding in practice, and time versus timing explains why the period you pick matters.
Planning monthly investing? Project it with the SIP calculator, then come back and try the CAGR calculator on your own numbers. The Charcha Knowledge Hub collects the basics in one place.
Related calculators
Last updated: 3 October 2026. This page uses no rates, slabs or charges, so the maths stays the same until the method changes.
Founder of Stock Charcha. Stock market enthusiast, actively investing since November 2022. About the author
Educational content only. This page is not personalised financial advice. Please do your own research or speak to a SEBI-registered adviser before investing, and read our disclaimer.
Frequently asked questions
Can CAGR be negative?
Yes. If the ending value is lower than the beginning value, CAGR turns negative and shows the steady yearly loss that links the two. For example, ₹1,00,000 falling to ₹80,000 over 3 years is a CAGR of about -7.17%.
What is the difference between CAGR and XIRR?
CAGR needs one beginning value and one ending value. XIRR handles several deposits or withdrawals on different dates, so it suits SIPs and irregular investing. If money moved in or out in between, CAGR will mislead you.
What is a good CAGR?
There is no universal figure. Compare your CAGR with inflation and with a benchmark or category over the same dates. A CAGR below inflation means your buying power fell, even if the rupee value rose.
Does the CAGR calculator work for periods shorter than a year?
It will calculate, but annualising a few months exaggerates the figure, because one good quarter gets stretched across twelve months. Treat a short-period CAGR as a curiosity, and prefer the absolute return.
Can I use the CAGR calculator for a SIP?
Not accurately. A SIP adds money every month, so there is no single beginning value. Use the SIP calculator to project a SIP, and use XIRR to measure the return on one you have already run.