Reva Money · Calculators · CAGR calculator

CAGR calculator

Work out the yearly growth rate (CAGR) between a starting and an ending value, and compare it with an FD rate.

In shortGoing from ₹1.00 L to ₹2.50 L in 7 years is 13.99% a year. (Worked out with starting value ₹1.00 L, ending value ₹2.50 L, years 7 years.)

Example

Starting value₹1.00 L
Ending value₹2.50 L
Years7 years
CAGR13.99%
Absolute return150.00%
Money multiplied2.50×

How it works

CAGR is the steady yearly rate that turns the starting value into the ending one. It ignores the ups and downs in between, which makes two investments over different periods easy to compare.

Formula: CAGR = (Ending value ÷ Starting value)^(1 ÷ years) − 1.

Questions

What is the CAGR of ₹1 lakh becoming ₹2.5 lakh in 7 years?

About 13.99% a year.

CAGR or XIRR?

CAGR suits one amount in and one amount out. For money put in at different times, like a SIP, XIRR is the right measure; Reva works it out from your statements.

Related calculators

Illustrative only. These figures assume steady returns, which real investments don’t give. They are not investment advice.