# CAGR Calculator

Enter what an investment was worth at the start, what it is worth now and the number of years in between to find its yearly growth rate.

Live calculator: https://calc.softool.in/cagr-calculator

## Worked example

An investment that grows from ₹1 lakh to ₹2 lakh in 5 years has a CAGR of 14.87%, although the absolute return is 100%.

## Quick answers

- **What CAGR is needed for money to grow 1.5 times in 10 years?** To grow 1.5 times in 10 years, an investment needs a CAGR of 4.14%.
- **What CAGR is needed for money to grow 2 times in 10 years?** To grow 2 times in 10 years, an investment needs a CAGR of 7.18%.
- **What CAGR is needed for money to grow 3 times in 10 years?** To grow 3 times in 10 years, an investment needs a CAGR of 11.61%.
- **What CAGR is needed for money to grow 5 times in 10 years?** To grow 5 times in 10 years, an investment needs a CAGR of 17.46%.
- **What CAGR is needed for money to grow 10 times in 10 years?** To grow 10 times in 10 years, an investment needs a CAGR of 25.89%.

## CAGR table: yearly growth needed

The yearly growth rate needed to multiply an investment in a given time.

| Money grows | 3 years | 5 years | 10 years | 15 years | 20 years |
|---|---|---|---|---|---|
| 1.5 times | 14.47% | 8.45% | 4.14% | 2.74% | 2.05% |
| 2 times | 25.99% | 14.87% | 7.18% | 4.73% | 3.53% |
| 3 times | 44.22% | 24.57% | 11.61% | 7.60% | 5.65% |
| 5 times | 71.00% | 37.97% | 17.46% | 11.33% | 8.38% |
| 10 times | 115.44% | 58.49% | 25.89% | 16.59% | 12.20% |

## How it is calculated

`CAGR = (ending value ÷ starting value)^(1 ÷ years) − 1`

CAGR is the single yearly rate that would turn the starting value into the ending value if growth were perfectly steady. It smooths out good and bad years, which makes it useful for comparing investments held for different lengths of time.

## Good to know

- Use CAGR to compare investments held for different lengths of time.
- CAGR hides the ups and downs along the way. Two investments with the same CAGR can have had very different journeys.
- Compare CAGR with inflation to see the real growth in buying power.

## Common questions

### How is CAGR different from absolute return?

Absolute return is the total percentage gain and ignores time. CAGR converts that gain into a per-year rate, so a 100% gain over 5 years is about 14.87% a year.

### Can I use CAGR for a SIP?

Not accurately. CAGR assumes one investment at the start. For many instalments on different dates, XIRR is the correct measure.

### What is a good CAGR?

It depends on the investment and its risk. A useful test is whether it beats inflation and a safe option such as a fixed deposit over the same period.

### Can CAGR be negative?

Yes. If the ending value is lower than the starting value, CAGR is negative, showing the yearly rate of loss.

---
Source: https://calc.softool.in/cagr-calculator
Last reviewed: October 2026. Results are estimates, not financial advice.