ANALYSIS
CAGR calculator
Compound Annual Growth Rate between two values, over any holding period
LEARN: CAGR · Rolling returns · XIRR
How it works
CAGR (Compound Annual Growth Rate) is the single steady annual rate that would take a starting value to an ending value over a given number of years - it smooths out the bumpy year-to-year path into one comparable number. Formula: CAGR = (End / Start)^(1/Years) - 1. Useful for comparing an investment's growth to a fixed deposit rate, a benchmark, or another fund.
Common questions
What is a good CAGR for mutual funds?
There's no single good number - a CAGR only means something next to a reference point. Compare it to the fund's own benchmark index and category peers over the same period, not to a fixed target. A fund beating its benchmark and category median at a given CAGR is doing its job; the same CAGR trailing both isn't.
Is CAGR the same as absolute return?
No. Absolute return is total growth over the whole period with no adjustment for time - 100% over 10 years and 100% over 2 years are both just "100%". CAGR converts that into a single steady annual rate, so returns over different holding periods become comparable.
What's the difference between CAGR and XIRR?
CAGR works for a single lump sum invested once and withdrawn once - two points in time. XIRR (used for SIPs) handles multiple cash flows on different dates, each compounding for a different length of time, so it fits a monthly SIP where CAGR does not.
Can CAGR be negative?
Yes - whenever the ending value is lower than the starting value, CAGR is negative, showing the steady annual rate of decline over the period.
A single-formula calculation, not a projection · Not financial advice