What is CAGR?
CAGR, or compound annual growth rate, is the steady yearly rate at which money would have to grow to go from its starting value to its final value in a given number of years. It smooths out the ups and downs into one yearly figure.
How to use this calculator
- Enter the starting value.
- Enter the value now (or at the end).
- Enter the number of years, decimals allowed.
Formula
CAGR = (Final value ÷ Starting value)1/years − 1
New to these words? See the money glossary.
Common questions
What is a good CAGR?
It depends on the asset. Fixed deposits give about 6% to 7.5%; a CAGR above inflation (about 5% to 6%) means your money grew in real terms.
When should I use XIRR instead of CAGR?
Use CAGR for a single investment. Use XIRR when you invested several times on different dates, as with a SIP.
What is the CAGR formula?
CAGR = (final value ÷ starting value) raised to the power 1 ÷ years, minus 1. For ₹1 lakh growing to ₹2 lakh in 5 years, CAGR is about 14.87%.