CAGR (Compound Annual Growth Rate) is the steady annual rate at which an investment would have grown from its starting value to its ending value over a given number of years, assuming gains are reinvested each year. It smooths out year-to-year fluctuations into one comparable number.

What is a good CAGR for investments in Pakistan?

Any CAGR above the inflation rate is real growth. Pakistan's CPI has averaged around 12–15% p.a. over the past decade. The KSE-100 has delivered approximately 18–22% CAGR over long periods. Equity mutual funds typically target 15–25% CAGR depending on market conditions.

What is the difference between CAGR and absolute return?

Absolute return is the total gain over the entire period regardless of time. CAGR accounts for the number of years — it's the annualised rate. A 150% absolute return over 10 years is only a 9.6% CAGR, while an 80% return over 4 years is a 15.8% CAGR.

What is the difference between CAGR and XIRR?

CAGR is for a single lump-sum investment held for a fixed period. XIRR handles multiple cash flows at different dates — it's used for SIPs and irregular investments. If you invest monthly, use XIRR to measure your actual return, not the fund's advertised CAGR.

🚀 CAGR Calculator

CAGR — Compound Annual Growth Rate Calculator

CAGR (Compound Annual Growth Rate) is the single most useful number for comparing investments — it smooths out year-to-year fluctuations into one steady annual rate that tells you the true pace of growth. This free CAGR calculator works in two modes: find the CAGR between any start and end value over any number of years, or project what an investment grows to at a given rate. Compare your result against Pakistani benchmarks — KSE-100 (≈18–22% historical), gold in PKR (≈15%), NSS certificates (≈14–18%), and equity mutual funds — to see how your investment stacks up.

Calculator Mode

Starting Value

Rs 1,000Rs 1 Cr

Ending Value

Rs 1,000Rs 5 Cr

Number of Years

1 yr40 yrs

CAGR

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CAGR

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Absolute Gain

Rs 0

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Total Return

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Compound Growth Over Time

Starting value vs total value at each year

Starting Value Gains

Value Breakdown

Key Milestones

Year-by-Year Breakdown

Year	Value	Annual Gain	Total Gain	Return %

How to Use

Choose CAGR mode to find the annual growth rate between two values, or Future Value mode to project how an investment grows at a given rate.
In CAGR mode, enter the starting value, ending value, and number of years — the calculator applies the formula (End/Start)^(1/n) − 1.
In Future Value mode, enter the initial value, expected annual CAGR rate, and investment period in years.
Read the result and compare it to Pakistani benchmarks shown — KSE-100 (≈18–22%), gold in PKR (≈15%), and NSS certificates (≈14–18%) — to judge whether your investment is performing well.

Frequently Asked Questions

What is CAGR?

CAGR (Compound Annual Growth Rate) is the steady annual rate at which an investment would have grown from start to end over a given period — assuming gains are reinvested each year. It smooths out year-to-year volatility into one clean, comparable number.

How is CAGR calculated?

CAGR = (Ending Value ÷ Starting Value) ^ (1 ÷ Years) − 1. For example: Rs 1,00,000 growing to Rs 2,50,000 in 5 years → (2.5)^(0.2) − 1 ≈ 20.1% CAGR. This calculator does the maths instantly — just enter your values.

What is a good CAGR in Pakistan?

The minimum useful CAGR is one that beats inflation. Pakistan's CPI has averaged 12–15% p.a. over the past decade, so any CAGR above 15% represents real wealth growth. The KSE-100 has delivered roughly 18–22% CAGR over long periods. Equity mutual funds target 15–25% depending on market conditions.

CAGR vs absolute return — what's the difference?

Absolute return is the total gain regardless of time. CAGR accounts for time — it's the annualised rate. A 150% absolute return over 10 years is a 9.6% CAGR, while an 80% return over 4 years is a 15.8% CAGR. Always compare investments using CAGR, not absolute returns.

When should I use XIRR instead of CAGR?

Use CAGR for a single lump-sum investment held for a fixed period. Use XIRR when you've made multiple investments at different times (like a monthly SIP) or made withdrawals. XIRR handles irregular cash flows; CAGR doesn't. Most mutual fund fact sheets show CAGR for lump-sum performance.