CAGR Calculator
Find the true annualised growth rate between a starting and an ending value.
Your investment
Results update live — calculations run in your browser, no signup.
12.15%per year
Excellent₹1.00 L grew to ₹1.77 L in 5 years — 1.77× your money
The curve assumes smooth compounding at 12.15% — real returns vary year to year. CAGR measures the past; it is not a guarantee of future returns.
Your initial capital vs the growth it earned, and how the value compounds each year at 12.15%.
Of the ₹1.77 L final value, 44% is growth your money earned.
| Year | Start | End | Growth |
|---|---|---|---|
| 1 | ₹1.00L | ₹1.12L | ₹12.1K |
| 2 | ₹1.12L | ₹1.26L | ₹13.6K |
| 3 | ₹1.26L | ₹1.41L | ₹15.3K |
| 4 | ₹1.41L | ₹1.58L | ₹17.1K |
| 5 | ₹1.58L | ₹1.77L | ₹19.2K |
| Total Growth | ₹77.4K | ||
CAGR vs Simple Return
Simple Return
77.4%
total growth over 5 years
CAGR
12.15%
annualised, compounded
Simple return shows total growth; CAGR shows the annualised compounded effect — the fair way to compare across different time periods.
Rule of 72
5.9 yrs
to double your money
72 ÷ 12.15% = 5.9 years
A quick estimate of how long it takes your investment to double at this rate.
Your CAGR vs illustrative 10-year average returns.
S&P 500
illustrative 10Y avg
Your CAGR
Excellent
Nifty 50
illustrative 10Y avg
Gold
illustrative 10Y avg
Benchmarks are illustrative long-term averages, not guarantees.Nifty 50, S&P 500 and gold figures are approximate 10-year averages shown for context only.
- Your money grew 1.77× — a total return of 77.4%.
- At 12.15% a year, money doubles roughly every 5.9 years.
- Sustaining 12.15% for 5 years turned ₹1.00 L into ₹1.77 L.
High CAGR compounds wealth
A higher annual rate, sustained over many years, is what drives outsized wealth — small differences snowball.
Invest for the long term
CAGR rewards patience. The longer your horizon, the more the compounding effect works in your favour.
Reinvest your returns
Letting gains stay invested — rather than withdrawing them — is what makes growth compound instead of stay flat.
Stay consistent
Avoid reacting to short-term swings. A steady CAGR over time beats chasing one lucky year.
Start investing in mutual funds
Open a free account with ICICI Prudential AMC and start an SIP online. ICICI Prudential Mutual Fund, at no extra cost to you.
Your result: ₹1.00 L → ₹1.77 L in 5 years — about 12.15% a year.
Plan the rest of your money life
Measure returns another way — or turn this growth rate into a forward plan.
CAGR is a backward-looking measure of what actually happened — it does not predict or guarantee future returns. Benchmark figures are illustrative long-term averages shown for context only, not live data or investment advice.
How CAGR is calculated
CAGR = (Final ÷ Initial)^(1 ÷ n) − 1
- Final
- ending value of the investment
- Initial
- starting value invested
- n
- number of years held
Worked example
With your inputs — ₹1.00 L growing to ₹1.77 L over 5 years: the growth multiplier is Final ÷ Initial = 1.77×, and taking its 5th-year root (raising it to 1 ÷ 5) then subtracting 1 gives a CAGR of about 12.15% a year. That is the single steady annual rate that compounds ₹1.00 L into ₹1.77 L — a total return of 77.4%. It is a backward-looking measure of what actually happened, not a guarantee of future returns.
Most asked CAGR questions
CAGR (compound annual growth rate) is the single steady annual rate that would take an investment from its starting value to its ending value over a given period. It smooths out the good and bad years into one number, which is why it's the standard way to compare investments held for different lengths of time.
It depends on the asset and the risk. As a rough guide: under 8% a year is modest (around fixed-deposit territory), 8–15% is excellent for a diversified long-term portfolio, and above 15% is exceptional — though very high returns usually come with higher risk or a short, lucky window. This page rates yours and compares it to typical equity and gold benchmarks.
Divide 72 by your annual return to estimate how many years it takes to double your money. At a 12% CAGR that's about 6 years. It's a close approximation of the exact figure, ln(2) ÷ ln(1 + CAGR).
Simple (absolute) return is the total percentage gain over the whole period, ignoring time. CAGR annualises it. A 77% total return over 5 years is about a 12% CAGR; over 10 years it's only about 5.9%. CAGR is the fair way to compare investments held for different periods.
No. The Nifty 50, S&P 500 and gold figures here are illustrative long-term averages shown for context only — actual returns vary year to year and are not guaranteed. Treat every comparison as a rough reference, not advice.
Understanding CAGR
What CAGR really tells you
The compound annual growth rate answers one question: if your investment had grown at a single steady rate every year, what would that rate be? It collapses the messy reality of good and bad years into one number, which is why it's the standard way to summarise and compare long-term performance.
CAGR vs simple return
Simple (absolute) return ignores time entirely — a 77% gain looks the same whether earned in two years or twenty. CAGR annualises it so two investments held for different periods can be compared fairly. A high simple return spread over many years can still be a modest CAGR.
The Rule of 72
Divide 72 by your annual return to estimate the years to double your money: 72 ÷ 12 ≈ 6 years, 72 ÷ 8 ≈ 9 years. It's a close approximation of the exact figure, ln(2) ÷ ln(1 + CAGR), and a fast way to feel the power of a higher rate.
Don't be fooled by a high CAGR
A high CAGR over a short period can be luck or a single great year, and it says nothing about volatility. Use it alongside the holding period, the risk taken and a benchmark — a 14% CAGR on a diversified portfolio over 15 years is far more meaningful than a 40% CAGR over one.