Investments
CAGR Calculator
Compound Annual Growth Rate calculator
About the CAGR calculator
Free CAGR Calculator to calculate Compound Annual Growth Rate of your investments. Analyze investment performance, compare mutual funds, stocks, and portfolio returns. Calculate CAGR for accurate investment analysis and decision making.
How the maths works
CAGR Formula
CAGR = (Ending Value / Beginning Value)^(1/N) - 1- CAGR
- Compound Annual Growth Rate
- Ending Value
- Final investment value
- Beginning Value
- Initial investment value
- N
- Number of years
A worked example
CAGR Calculation Example
| Initial Value | ₹1,00,000 |
| Final Value | ₹2,50,000 |
| Time Period | 8 years |
CAGR: 12.13% per annum
How to use it
- Enter initial investment value
- Input final investment value
- Specify investment period in years
- Get CAGR percentage and analysis
What it accounts for
- Calculate investment growth rate
- Compare different investments
- Analyze historical performance
- Understand true annual returns
- Make informed investment decisions
Why it is worth working out
- Standardized performance comparison
- Accounts for compounding effect
- Easy to understand metric
- Useful for goal planning
Questions people ask
What does CAGR actually tell me?
The single constant annual rate that would have taken your starting value to your ending value over the period. It smooths away everything that happened in between, which is what makes it comparable across investments — and also what makes it a poor description of how the ride felt.
Why is CAGR different from average return?
Because losses hurt more than equivalent gains help. A 50% fall followed by a 50% rise is an average return of 0% but leaves you 25% down; the CAGR correctly reports about −13.4% a year. Always compare CAGR, never a simple average.
Can I use CAGR for a SIP?
No. CAGR assumes one lump sum invested at the start. For a series of investments made at different times, XIRR is the right measure — it accounts for how long each instalment was actually invested.
What is a good CAGR?
It only means anything against an alternative and a time period. Over ten years, an equity fund delivering 12% when its benchmark did 14% has underperformed, while a debt fund delivering 7.5% has done well. Compare like with like, after costs and after tax.
Read more on this
- Gold ETF, digital gold, or SGB: which one you actually own and what you actually pay — Three ways to own gold without a locker. Each has different costs, lock-ins, tax treatment, and — critically — different answers to the question 'what happens if the platform shuts down.'
- NAV tells you nothing about whether a fund is cheap — A fund at ₹10 is not cheaper than one at ₹500. The unit price is an accounting artefact, and the NFO industry depends on people not knowing that.
- Every way to own gold, priced properly — Jewellery loses 15% at the door. Sovereign Gold Bonds pay you 2.5% to hold them. The gap between the best and worst way to own the same metal is enormous.
- CAGR, XIRR and absolute return — which number is lying to you — The same investment can honestly be described as 60% return, 10% CAGR or 14% XIRR. Knowing which applies stops you comparing incomparable things.
This calculator is for information and education. It is not financial advice — see the disclaimer.