CAGR (Compound Annual Growth Rate) smooths an investment's ups and downs into a single annualised number — the steady rate that would have grown your money from start to finish. Enter the beginning value, ending value and number of years to see the true yearly growth rate.
CAGR
14.87%
Annualised growth rate.
Educational estimate only. Past growth rates do not guarantee future returns. This is not investment advice.
CAGR answers: "at what constant yearly rate would the start value have to compound to reach the end value?"
CAGR = (Ending value ÷ Beginning value)1 ÷ years − 1
Unlike a simple average of yearly returns, CAGR accounts for compounding — each year's growth builds on the previous year's total.
₹1,00,000 grows to ₹2,00,000 in 5 years:
The absolute return is 100%, but the annualised return — the number you can fairly compare with an FD or mutual fund — is 14.87% per year.
CAGR is the single yearly rate equivalent to your investment's actual journey. Use it to compare investments over different time periods — a 100% gain in 5 years (14.87% CAGR) beats a 60% gain in 3 years (17.0% CAGR)? No: the second is better per year. That's exactly the comparison CAGR enables.
Remember what it hides: volatility. Two investments can share a CAGR while one swung wildly and the other glided — check the path, not just the average.
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Content last reviewed on 2026-10-06.