Context matters: 7% is good for a debt fund, 12–15% for diversified equity over 10 years, and 20%+ is exceptional and rarely sustained.
CAGR Calculator
Turn any starting value, ending value and time period into a compound annual growth rate — or reverse it to see what a target CAGR turns your money into. Includes the difference between CAGR and absolute return.
CAGR
13.99%
Absolute return
150.00%
Gain
₹1,50,000
Simple average return p.a.
21.43%
Implied value path at this CAGR
| Year | Value | Gain |
|---|---|---|
| 1 | ₹1,13,990 | ₹13,990 |
| 2 | ₹1,29,937 | ₹29,937 |
| 3 | ₹1,48,115 | ₹48,115 |
| 4 | ₹1,68,837 | ₹68,837 |
| 5 | ₹1,92,457 | ₹92,457 |
| 6 | ₹2,19,382 | ₹1,19,382 |
| 7 | ₹2,50,073 | ₹1,50,073 |
How the CAGR Calculator works
CAGR is the single constant annual rate that would take the starting value to the ending value over the period. It smooths out the ups and downs, which makes it the right yardstick for comparing investments held for different lengths of time.
Absolute return ignores time: 150% over 7 years sounds big, but it is only 14% a year. Dividing absolute return by years ("average return") overstates growth because it ignores compounding.
CAGR = (End ÷ Start)^(1/n) − 1 End = Start × (1 + CAGR)^n
- n
- years
Worked example
- What do you want to find?: CAGR
- Initial value: ₹1,00,000
- Final value: ₹2,50,000
- Time period: 7 Yr
₹1 lakh becoming ₹2.5 lakh in 7 years is a 150% absolute return but a CAGR of 13.98%. The naive "150 ÷ 7 = 21% a year" is wrong because it ignores compounding.