Run a conservative scenario before relying on the headline result.
CAGR Calculator
Calculate annualised growth between a starting and ending value. Adjust the assumptions, inspect the chart and read the complete guide below.
02 Your projection
Ending value₹2.50 LUpdates instantly as you edit
Total invested / base₹1.00 L
Growth / cost₹1.50 L
CAGR20.11%
Projection journeyHover to inspect a year
CAGR smooths the entire period into one annualised rate.
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Five smart nudges
Use the result with context.
Review the assumptions after any major change in income, rates or goals.
Keep emergency money separate from long-term investments.
Account for taxes, charges and inflation when comparing options.
Use this estimate to ask better questions, not as a return promise.
Understanding CAGR in India
Editorially reviewed 12 July 2026 · Rules and assumptions can change
What CAGR measures
Compound annual growth rate is the single annual rate that would turn a starting value into an ending value over a stated number of years: (ending/starting)^(1/years)-1. ₹1 lakh becoming ₹2.5 lakh in five years is about 20.1% CAGR—not 30% a year and not proof that 20.1% occurred in every year.
CAGR smooths the path completely. A portfolio may rise 40%, fall 30% and recover while showing the same start and end values as a steady investment. Use drawdown and volatility alongside CAGR.
When CAGR is valid
CAGR is appropriate for one starting value and one ending value with no intervening contributions or withdrawals. Dividends must be consistently included or excluded. For a mutual fund, use adjusted or total-return values when comparing like with like.
If cash flows occur between the dates, use XIRR or a time-weighted method. Applying CAGR to a SIP wrongly treats every rupee as invested from day one.
Nominal, real and after-tax CAGR
A 10% nominal CAGR with 6% inflation produces about 3.8% real CAGR using (1.10/1.06)-1. Subtracting six percentage points is only an approximation. For an investor outcome, compare after-tax ending proceeds with actual net contributions.
Costs reflected in NAV are already embedded in a fund’s performance, while advisory charges or account-level taxes may not be. State the basis whenever reporting a CAGR.
Fair performance comparisons
Use identical start and end dates, asset categories, currency and dividend treatment. A three-year small-cap CAGR and a ten-year debt CAGR answer different questions. Rolling-period distributions reduce dependence on a favourable single endpoint.
Do not annualise a very short gain as if it were repeatable. A 5% gain in one month does not imply a dependable 79.6% annual return.
CAGR audit checklist
Verify exact dates, years including fractions, corporate actions, dividends, fees and cash flows. Preserve the source statement for both values.
Use the result as a compact description of past growth, not a future-return promise. For irregular investing, move to the XIRR estimator with dated cash flows.
Official sources used for this guide
Rates, thresholds and rules can change after the review date. Check the linked authority and the provider’s current documents before acting.
CAGR calculator FAQs
Is CAGR the average of yearly returns?
No. It is the geometric rate linking start and end values.
Can CAGR measure a SIP?
Not correctly when contributions occur throughout the period; use XIRR or another cash-flow-aware measure.
Does CAGR show volatility?
No. Very different paths can produce the same CAGR.
How do I adjust CAGR for inflation?
Use (1 + nominal CAGR) divided by (1 + inflation), then subtract one.
Is past CAGR a forecast?
No. It describes a historical start-to-end relationship only.