XIRR vs CAGR: which return belongs to your investment?
Understand when a single starting value is enough, when dated cash flows matter, and why a missing final valuation changes the answer.
Read the guideCAGR calculator
Turn a total gain into an annualised return.
Compound annual growth rate
14.87%
Starting value₹1,00,000
Ending value₹2,00,000
Total gain / loss₹1,00,000
Total return100%
For illustration only. Read the assumptions below for the full picture.
Estimates, not promises. Explore different scenarios.
Understand your result.
Calculate a smoothed annual growth rate between one starting value and one ending value. CAGR helps express a total change on an annual basis.
A steady annual percentage summarises endpoints, but says nothing about the path, volatility or intermediate losses.
A worked example.
Using this calculator’s default inputs, compound annual growth rate is 14.87%. This is an illustration of the stated formula, not a forecast.
See the example inputs
| Starting investment value | ₹1,00,000 |
|---|---|
| Ending investment value | ₹2,00,000 |
| Holding period in years | 5 year fraction |
A common mistake to avoid
Using CAGR when additional money was invested during the holding period.
Questions you might have.
Should I use XIRR for SIPs?
When there are multiple dated contributions or withdrawals, XIRR is generally the relevant mathematical comparison. CAGR assumes no interim cash flows.
Can CAGR be negative?
Yes. A lower ending value produces a negative annualised growth rate; an ending value of zero produces −100%.
Prepared by INDwise · Calculation checks: 29 October 2026 · How we check the maths · Report a correction
How we calculate it
CAGR = [(ending value ÷ starting value)^(1/years) − 1] × 100.
Assumptions & things to know
For one initial investment and one ending value, with no interim cash flows. Use IRR/XIRR when you add or withdraw money. CAGR smooths the path and does not measure volatility.
Your privacy & sharing
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