Turn a starting value, an ending value and the years in between into one comparable yearly growth rate. Updated 7 Nov 2026.
The compound annual growth rate (CAGR) is the steady yearly return that would take an investment from its starting value to its ending value over a number of years. Real investments never grow in a straight line, but CAGR smooths the path into one comparable figure, so you can compare a stock held for three years with a fund held for seven or a savings account held for ten.
CAGR = (Ending value / Starting value)1 / years − 1. Multiply by 100 for a percentage. The calculator above also shows the total return and the gain in rupees.
Rs 100,000 that grows to Rs 250,000 in 5 years has a total return of 150%, but a CAGR of 20.11% a year: 250,000 / 100,000 = 2.5; 2.5 to the power 1/5 = 1.2011; minus 1 = 20.11%. Dividing 150% by 5 years would wrongly give 30% a year, because it ignores compounding.
An average of yearly returns can be misleading. An investment that gains 50% one year and loses 50% the next has an average return of 0%, yet it has lost 25% of its value: its CAGR is about −13.4% a year. CAGR tells you what actually happened to your money.
Compound annual growth of the KSE-100 index to October 2026, from month-end closes. Price only: dividends would add to these figures.
| Period | CAGR | Total change |
|---|---|---|
| 1 year | +3.0% | +3% |
| 3 years | +47.4% | +221% |
| 5 years | +29.2% | +260% |
| 10 years | +15.4% | +317% |
| 15 years | +19.2% | +1,302% |
| 20 years | +14.4% | +1,369% |
| 25 years | +21.0% | +11,735% |
CAGR does not show risk: two investments with the same CAGR can have very different ups and downs. It also ignores money added or taken out during the period; for regular investments, use the SIP calculator.
Related: compound interest calculator, SIP calculator, dividend calculator, and all calculators.
The calculator runs in your browser and nothing you type is saved or sent anywhere. Results are estimates for planning and education, not investment, tax or religious advice.
It depends on risk and inflation. A CAGR above the inflation rate grows your real wealth; for Pakistani equities, compare it with the KSE-100's own record and the return on bank deposits or T-bills over the same years.
Use =(End/Start)^(1/Years)-1, or =RRI(Years, Start, End). Format the cell as a percentage.
About 15.4% a year to October 2026, price only, without dividends.
Yes. If the ending value is below the starting value, CAGR is negative and shows the average yearly loss.
Absolute return is the total change from start to end. CAGR spreads that change over the years with compounding, so it can be compared across different holding periods.