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What CAGR is needed to double your money in 5 years?

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The Answer
14.87% p.a.
using the exact compound growth formula

Calculate the exact annualised return (CAGR) required to turn any amount into double in 5 years. See how Rule of 72 compares to the exact formula.

By Aditya GuptaAccounting & Finance EducatorLast reviewed May 31, 2026Source: AMFI return data

Why CAGR Matters for Goal Planning

CAGR — Compound Annual Growth Rate — is the smoothed annual return that explains how an investment actually grew over a multi-year period. Doubling money in five years requires a CAGR of 14.87% per annum, derived from the formula (2)^(1/n) – 1. The Rule of 72 estimate (72÷5 = 14.4%) is close but slightly under the exact value.

14.87% is achievable but not guaranteed. Indian mid-cap and small-cap mutual funds have averaged 15-18% over long stretches, but with severe drawdowns. Large-cap funds typically deliver 12-14%. Bank FDs and PPF give 7-7.5% — so doubling in 5 years through pure debt is mathematically impossible.

For goal-planning, CAGR helps you reverse-engineer your investment strategy. If your child’s education needs ₹40 lakh in 8 years and you have ₹20 lakh today, you need a CAGR of (40/20)^(1/8) – 1 = 9.05% — comfortably achievable through a balanced equity-debt mix. If the target needs 18% CAGR, the gap is unrealistic and either the goal, timeline, or contribution needs to change.

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CAGR to Double Calculator

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How We Calculated This

Doubling factor: 2× the initial investment
Formula: CAGR = (2)^(1/n) − 1, where n = number of years
Returns are compounded annually
No tax or inflation adjustment
Rule of 72 approximation: 72 ÷ years gives approximate CAGR

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Frequently Asked Questions

What’s the Rule of 72?+
Divide 72 by the return rate to estimate doubling time. At 12% returns: 72÷12 = 6 years to double. Conversely, 72÷5 = 14.4% to double in 5 years — close to the exact 14.87%.
Which investments can give 14.87% consistently?+
Mid-cap and small-cap mutual funds have historically averaged 15–18% over long periods, but with high volatility. Diversified equity funds average 12–14%. No guaranteed instrument gives 14.87%.
How long does it take to double money at different rates?+
At 8% (debt funds): ~9 years. At 10%: ~7.2 years. At 12%: ~6 years. At 15%: ~4.8 years. At 18% (aggressive equity): ~4 years.
Does 14.87% mean every year gives that return?+
No — CAGR is the smoothed annual rate that explains the total growth. In practice, your portfolio might return +30% one year and -15% the next, but still achieve a 14.87% CAGR over 5 years.
What’s the CAGR to double in 3 years?+
Using (2)^(1/3) − 1 = 25.99% p.a. This is achievable only in exceptional markets or high-risk instruments — not a realistic planning assumption.