XIRR
Find your yearly return when the money went in on many different dates.
Stocks and trading
CAGR calculator
Turn a starting value and an ending value into a smooth yearly growth rate.
Find the
years
Between 1 month (0.09) and 100 years.
After inflation
Growing from ₹1,00,000 to ₹2,50,000 in 5 years is a steady 20.11% a year.
- Starting value
- ₹1,00,000≈ ₹1 lakh
- Ending value
- ₹2,50,000≈ ₹2.5 lakh
- Growth rate (CAGR)
- 20.11% a yearThe steady yearly rate that turns the start value into the end value.
Growth, year by year
Smooth growth at the steady rate. Tap or hover the chart, or use the slider, to read any year.
- Value
After 5 years
Value
₹2,50,000
Year-by-year table
| Year | Value |
|---|---|
| 0 | ₹1,00,000 |
| 1 | ₹1,20,112 |
| 2 | ₹1,44,270 |
| 3 | ₹1,73,286 |
| 4 | ₹2,08,138 |
| 5 | ₹2,50,000 |
Where the end value comes from
Tap a segment to see its rupees.
Growth on top₹1.5 lakh60% of total
Of the ₹2,50,000 end value, ₹1,00,000 is what you started with and ₹1,50,000 is growth.
What next
How it works
CAGR, the compound annual growth rate, is the single steady yearly rate that would turn a starting value into an ending value over a number of years. Real investments rarely move that smoothly, so it is a summary, not a description of each year.
CAGR = (End / Start)^(1 / years) - 1, and End = Start x (1 + CAGR)^years
A worked example
₹1,00,000 growing to ₹2,50,000 in 5 years is a CAGR of 20.11% a year. Going the other way, ₹1,00,000 growing at 12 a year for 5 years ends at ₹1,76,234.
What it leaves out
- Money added or taken out along the way. Use the XIRR calculator when there are several dated cash flows.
- Tax, exit load and charges, unless they are already in the numbers you enter.
- Inflation.
- The path between the two ends. A fund that fell and recovered can have the same CAGR as one that rose steadily.
Questions people ask
What is the difference between CAGR and absolute return?
Absolute return is the total change, such as 150 percent. CAGR spreads that over the years as a yearly rate, so investments held for different periods can be compared.
When is CAGR the wrong tool?
When you add or withdraw money along the way, as with a SIP. CAGR looks only at the start and the end value. XIRR handles dated cash flows.
Can CAGR be negative?
Yes. If the ending value is below the starting value, the rate is negative: the investment lost value on average each year.
Does a high CAGR in the past mean a high CAGR next?
No. CAGR describes what happened between two dates. It says nothing certain about the future, and a different start or end date can change it a lot.
Why can I enter a fraction of a year?
Many holding periods are not whole years. Use decimals, such as 2.5 for two and a half years. The period must be between about one month and 100 years.