CAGR calculator: the true yearly growth of an investment
CAGR (compound annual growth rate) is the steady yearly rate at which an investment would have had to grow to go from its starting value to its ending value. It smooths out the ups and downs in between, which makes it the standard way to compare the performance of stocks, mutual funds, property, a business’s revenue or any other value measured at two points in time.
This CAGR calculator works three ways. Enter a beginning value, an ending value and the time — in years or as two dates — to get the CAGR. Or start from a CAGR to find the future value, or the number of years needed to reach a target. It also shows the absolute return, the growth multiple, the doubling time, a value-path chart and a yearly table you can download.
A fourth mode, Rule of 72, gives the years to double at a rate and the rate needed to double in a set number of years, set against the exact logarithmic answer. Use it in any currency. CAGR describes past growth or an assumed rate; it is not a forecast, and results are estimates rather than investment advice.
How to use the CAGR Calculator
- Pick what you want: CAGR, Future value, Years needed or Rule of 72.
- Enter the Beginning value — the price, NAV or amount at the start.
- Enter the Ending value (or the target value), or the CAGR when projecting forward.
- Set the Time period in years (decimals are fine), or switch the unit to dates and pick the start and end dates.
- Read the result, the absolute return, growth multiple and doubling time, and check the year-by-year value path or download it as CSV.
CAGR Calculator features
Four modes
Growth rate from two values, future value from a rate, years to a target, or doubling time with the rule of 72.
Years or exact dates
Measures whole calendar years plus the exact fraction of the final year between two dates.
Absolute vs. annual
Shows absolute return and growth multiple next to the CAGR so you can see both views.
Formula shown
Every result displays the formula with your numbers filled in.
Value path
A chart and table of the smooth growth path implied by the CAGR, exportable to CSV.
CAGR formula and examples
CAGR = (Ending value ÷ Beginning value)1 ÷ years − 1. Rearranged, the future value is FV = Beginning × (1 + CAGR)years, and the time to reach a target is years = ln(Target ÷ Beginning) ÷ ln(1 + CAGR).
Stock example: you bought shares for $10,000 and sold them five years later for $25,000. CAGR = (25,000 ÷ 10,000)1/5 − 1 = 20.11% a year, while the absolute return is 150%.
Mutual fund example: ₹50,000 invested in a fund grows to ₹1,20,000 in 7 years. CAGR = 2.41/7 − 1 ≈ 13.32%. If another fund turned ₹1,00,000 into ₹1,80,000 in 4.5 years, its CAGR is about 13.95%, so it grew slightly faster even though its absolute return (80%) looks smaller than the first fund’s 140%.
Rule of 72 vs. the exact doubling time
The rule of 72 says money doubles in about 72 ÷ rate years, and the rate needed to double in N years is about 72 ÷ N per cent. The exact figures are ln 2 ÷ ln(1 + rate) years and 21/N − 1. The rule is closest between about 6% and 10%: at 8% it gives 9.00 years against 9.01 exactly, at 12% 6.00 against 6.12, and at 2% 36 against 35.0. It suits annual compounding; for lower or higher rates use the exact result, which this mode shows next to the estimate in a table. For a mutual fund, enter its past CAGR as the rate, knowing returns are not promised.
CAGR vs. absolute return vs. average return
- Absolute return is the total change, (End − Start) ÷ Start. It ignores time, so 100% over 3 years and 100% over 10 years look the same.
- CAGR annualises that change with compounding. Doubling your money means 25.99% a year over 3 years, 14.87% over 5 years and 7.18% over 10 years.
- Average annual return (the simple mean of yearly returns) overstates growth when returns are volatile: +50% then −50% averages 0% but leaves you with 75% of your money, a CAGR of −13.4%.
- For an investment with several deposits or withdrawals, such as a SIP, use XIRR instead; CAGR assumes a single amount at the start. See the SIP calculator and lumpsum calculator for projections.
Limitations to keep in mind
- CAGR hides volatility — two investments with the same CAGR can have very different risk.
- It depends heavily on the start and end dates you choose; check several periods.
- It is a nominal figure. Subtract inflation to see real growth with the inflation calculator, or compare with interest-bearing savings using the compound interest calculator.
- Dividends, fees and taxes are not included unless they are already reflected in the ending value.
CAGR Calculator FAQ
How do you calculate CAGR?
Divide the ending value by the beginning value, raise the result to the power of 1 ÷ number of years, and subtract 1. This CAGR calculator does it for you and also accepts start and end dates.
What is a good CAGR?
It depends on the asset and the risk. Compare a fund or stock with its benchmark index over the same period, and with inflation, rather than with a fixed number.
Can CAGR be negative?
Yes. If the ending value is lower than the beginning value, CAGR is negative — for example, falling from 100 to 80 over 2 years is a CAGR of about −10.56%.
What is the difference between CAGR and absolute return?
Absolute return is the total percentage gain regardless of time. CAGR converts it into an equivalent yearly compound rate, which lets you compare investments held for different periods.
Is CAGR the same as XIRR?
Only when there is a single investment at the start and a single value at the end. With multiple cash flows, such as monthly SIP instalments, XIRR is the correct measure.
How long will it take to double my money?
Choose Rule of 72 and enter the rate: at 7.2% it takes 9.97 years exactly and 10 by the rule (72 ÷ 7.2). “Years needed” does the same for any target, not only double.
How accurate is the rule of 72?
Within about a tenth of a year for rates of roughly 6% to 10% with annual compounding. The error grows at very low or high rates, so check the exact figure shown beside it.