Calculate CAGR of any investment in India. Enter starting value, ending value and years held to find your annualised growth rate, absolute gain and value multiple instantly. What is CAGR, formula, CAGR vs absolute return and vs X-Ray growth explained.
CAGR = (ending value ÷ starting value) ^ (1 ÷ years) − 1, shown as % p.aAbsolute gain % = (ending − starting) ÷ starting × 100Value multiple = ending ÷ startingWhat is CAGR only makes sense against alternatives: around 6 to 7% for FDs, roughly 10 to 14% for long-run Indian equities. This calculator converts any start-to-end journey into that single annualised number, plus absolute gain and the value multiple, so 1 lakh to 2 lakh in 5 years reads as 100% absolute but 14.87% CAGR.
CAGR formula, step by step: take ending ÷ starting (2.0 for 1 lakh to 2 lakh), raise to 1 ÷ years (1 ÷ 5 = 0.2, so 2^0.2 = 1.1487), subtract 1 (0.1487) and multiply by 100. That is 14.87% p.a. — the steady yearly rate that would grow 1 lakh to 2 lakh in exactly 5 years if compounded annually.
CAGR vs absolute return: absolute ignores time, so 100% in 5 years and 100% in 10 years look identical (both double the money) while CAGR separates them cleanly — 14.87%/yr versus 7.18%/yr. A small base year inflates total % the same way: PAT 17 lakh to 130 lakh reads as +624% total, but annualised over the same window it is roughly +94%/yr CAGR. Both numbers describe the same journey; total shows the full swing, CAGR shows the per-year pace so a tiny starting year cannot flatter the trend.
CAGR vs DostIpo X-Ray Financial Growth: the X-Ray engine deliberately scores simple total change (newest − oldest) ÷ |oldest| × 100, NOT CAGR — for example PAT +624% total sits beside PAT CAGR ~94%/yr on every IPO page's Growth Quality card. Total is the full swing the score uses; CAGR is the same journey per year. That is why both are shown together, with a base-year caution whenever profits started small.
The Rule of 72 shortcut lives here too: divide 72 by the CAGR for doubling years (about 4.8 at 14.87%). And the CAGR vs XIRR vs absolute return confusion resolves simply, since absolute ignores time, CAGR annualises one investment, and XIRR annualises irregular flows like SIPs.
CAGR can be negative (ending below starting), and it hides the journey's volatility entirely, because a smooth 12% and a roller-coaster 12% look identical. For SIP returns specifically, use XIRR from your fund statement instead.
CAGR (Compound Annual Growth Rate) is the steady yearly rate that would grow a starting value into an ending value over the given years if compounded annually. Formula: (ending ÷ starting) ^ (1 ÷ years) − 1. Example: ₹1 lakh to ₹2 lakh in 5 years is (2)^0.2 − 1 = 14.87% p.a.
CAGR = ((ending ÷ starting) ^ (1 ÷ years) − 1) × 100. For ₹1,00,000 to ₹2,00,000 in 5 years: 2^0.2 = 1.1487, minus 1 = 0.1487, so 14.87% p.a. Absolute gain is 100% and the value multiple is 2x — same journey, three views.
Absolute return = (ending − starting) ÷ starting × 100 and ignores time: 100% in 5 years and 100% in 10 years both just say money doubled. CAGR annualises it: 14.87%/yr versus 7.18%/yr. Use absolute for the full swing, CAGR for the per-year pace when comparing investments held for different durations.
X-Ray scores simple total change ((newest − oldest) ÷ |oldest| × 100, e.g. PAT +624%) while CAGR annualises the same journey (e.g. ~94%/yr). Total is the full swing the score uses; CAGR is the steadier per-year read that a small base year cannot inflate. IPO pages show both side by side in the Growth Quality card with a base-year caution where needed.
Absolute return is total gain ignoring time. CAGR smooths it into a steady yearly rate for a single investment. XIRR extends the same idea to irregular cash flows like monthly SIPs — use CAGR for one-time investments, XIRR for SIPs.
Context matters: Indian equity mutual funds have delivered roughly 10–14% annualised over long periods, while FDs give around 6–7%. Past performance never guarantees future returns.
No. This tool is for education only. Market investments are subject to risks; consult a SEBI-registered adviser before investing.
Yes. If the ending value is lower than the starting value, CAGR comes out negative — it simply annualises a loss the same way it annualises a gain.
CAGR assumes one entry and one exit. SIPs have dozens of entries at different NAVs, so only XIRR (available in your fund statement or spreadsheet) gives the true annualised return.
The Rule of 72: divide 72 by the CAGR to get approximate doubling years. At 14.87% money doubles in about 4.8 years — which is exactly what ₹1 lakh to ₹2 lakh in 5 years means.
Last updated: 14 Oct 2026, 00:14 IST