Investment
What is CAGR?
Compound annual growth rate compressed into one number — useful, and easy to misuse.
Publisher: SmartCalculatorsLast updated: 17 August 2026
One rate that connects two points
CAGR is the constant annual rate that would take a starting value to an ending value in n years: (FV / PV)^(1/n) − 1. Two very different journeys can share the same CAGR. It describes the endpoints, not the path.
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Frequently asked questions
Can I use CAGR on a SIP?
Point-to-point CAGR ignores money added along the way. For SIPs and mixed cash flows, XIRR is the usual measure. Our CAGR calculator is for a start value, an end value and a duration.
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SmartCalculators provides educational calculators and estimates. Results are for informational purposes only and should not be considered financial, tax, investment, legal or professional advice.