CAGR Calculator
Start and finish
No interim deposits or withdrawals. Dates use actual days / 365. Benchmark and inflation are assumptions, not live market rates.
Against your benchmark
The same initial amount is compounded at your benchmark for the same duration. CAGR smooths the endpoints; it does not describe annual volatility, dividends omitted from ending value, or the path taken.
CAGR versus total return: measure the same investment two ways
CAGR is the constant annual growth rate that connects a beginning value with an ending value. Total return describes the change across the whole period; CAGR annualizes it using compounding. It works for a single starting investment without external contributions or withdrawals. Use XIRR when cash enters or leaves on different dates.
Worked example
Rs 1,00,000 growing to Rs 1,21,000 over two years represents 21% total growth and 10% CAGR, not 10.5%. If the ending value instead falls to Rs 81,000, total return is -19% and CAGR is -10%. A zero ending value represents a complete loss and a -100% annualized endpoint result.
Formula and calculation method
CAGR = (ending value / beginning value)^(1 / years) - 1Beginning value must be positive and ending value may be zero. Date mode uses the actual number of calendar days divided by 365, including leap days. Entered-years mode uses your number directly. No interim rounding is applied. Annualizing a short holding period can create a very large number without implying that the same performance will continue.
Interpretation and limitations
Real CAGR divides the annual growth factor by the annual inflation factor, then subtracts one. Benchmark ending value compounds the same starting amount at the benchmark rate over the same duration. Neither benchmark nor inflation defaults are live data. Taxes and fees are reflected only to the extent that your entered ending value already includes them.
Reference: FINRA: investment returns explained.
Common questions
Can I use CAGR for a SIP?
Not when you make recurring external contributions. Dividing the ending value by the first installment or by total contributions ignores timing. XIRR accounts for the actual dates and amounts.
Does CAGR tell me investment risk?
No. Two investments with the same endpoints can have very different volatility and drawdowns. CAGR does not reveal the path, future performance or probability of loss.
Why does exact-date CAGR differ from whole-year CAGR?
Date mode uses actual days / 365. An interval containing a leap day may be slightly longer than a whole number of 365-day years. Select the convention that matches your comparison.