About this CAGR Calculator
CAGR (Compound Annual Growth Rate) is the constant annual rate that would take a starting value to an ending value over a period. Investors use a CAGR calculator to compare funds, businesses or personal portfolios fairly across different time spans.
For SIPs with many cash flows, XIRR is often more accurate than CAGR. Use CAGR when you have a clear start value, end value and holding period.
How to use this calculator
- Enter the value at the start of the period.
- Enter the value at the end.
- Enter how many years between those dates.
- Read CAGR, absolute gain and wealth multiple.
Formula used
CAGR = (Ending value ÷ Beginning value)^(1 ÷ years) − 1.
Practical tips
- Compare CAGR over similar periods; five-year numbers are more informative than one-year spikes.
- High CAGR with huge drawdowns may still feel painful to hold — check risk too.
- Read our XIRR vs CAGR guide when your investments include regular SIPs.
Frequently asked questions
What does CAGR tell you?
It shows the smoothed annual growth rate between two portfolio values over time.
CAGR vs absolute return?
Absolute return is the total percentage change. CAGR annualises that change so different time periods are comparable.
Can CAGR be negative?
Yes, if the ending value is lower than the starting value.
Should I use CAGR for SIP returns?
Prefer XIRR for SIPs because money is invested on multiple dates. CAGR fits a single lumpsum start and end better.
