CAGR calculator
CAGR tells you the steady yearly rate at which something grew. Use it to compare a stock, a fund, a property or a business’s sales on equal terms.
Rules for FY 2026-27 · Checked 24 October 2026
CAGR (yearly growth rate)13.99%
The steady yearly rate that turns ₹1L into ₹2.5L in 7 years.
- Total growth is 150%, but spread over 7 years that is 13.99% a year.
- At this rate money doubles every 5.3 years.
- Compare it with an FD at 7% or PPF at 7.1% to judge the investment.
- Starting value
- ₹1,00,000
- Final value
- ₹2,50,000
- Gain
- ₹1,50,000
CAGR = (₹2.5L ÷ ₹1L)^(1 ÷ 7) − 1 = 13.99%
The CAGR formula
CAGR = (final value ÷ starting value)^(1 ÷ years) − 1.
If ₹1 lakh grew to ₹2.5 lakh in 7 years, the total growth is 150%, but the CAGR is about 13.99% a year.
CAGR, absolute return and XIRR
- Absolute return is total growth, ignoring time. Fine for periods under a year.
- CAGR spreads growth evenly over the years, for a single investment held throughout.
- XIRR is the right measure when money goes in and out at different times, as with a SIP.
Frequently asked questions
What is a good CAGR?
Compare it with alternatives over the same period: about 7% for fixed deposits and PPF, and 10–14% for diversified equity funds over the long term.
Can CAGR be negative?
Yes. If the final value is below the starting value, the CAGR is negative.
Sources: SEBI investor education