How to use this calculator
- Enter or choose amount invested.
- Enter or choose current value.
- Enter or choose investment date.
- Enter or choose valuation date.
- The cAGR updates as you type. Use Copy result or Share to keep it.
Method
CAGR = (End value ÷ Start value)^(1 ÷ Years) − 1; Years = Days ÷ 365; Absolute return = (End − Start) ÷ Start
- Days
- calendar days between the two dates
Worked example
- 1 Jan 2021 to 1 Jan 2024 is 1,095 days = 3 years.
- 1,33,100 ÷ 1,00,000 = 1.331, and 1.331^(1/3) = 1.10.
- CAGR = 10% a year; absolute return = 33.1%.
₹1 lakh growing to ₹1.331 lakh in three years is a 10% CAGR.
What the result means
Use CAGR for a single lump sum. For SIPs or several purchases and redemptions, the right measure is XIRR, because each instalment is invested for a different time.
Assumptions and limits
- A single investment with no further purchases or withdrawals.
- Years are counted as days ÷ 365.
- For periods under a year, CAGR annualises the return and can look misleadingly large or small.
- Dividends paid out are not included unless you add them to the current value.
Questions
What is the difference between CAGR and absolute return?
Absolute return is the total percentage gain; CAGR spreads it into an equivalent yearly rate, so it accounts for how long you held the investment.
Can I use CAGR for a SIP?
No. Each SIP instalment has a different holding period; use an XIRR calculation instead.
Please note: Returns are illustrations at a constant rate, not predictions or guarantees. Investments can lose value. This is not investment advice.