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CAGR Calculator

Calculate the Compound Annual Growth Rate of any investment. Enter the starting value, ending value, and number of years to find the annualised return.

Currency
Investment Values
Initial Value$10,000
$
10010,00,000
Final Value$18,000
$
10010,00,000
Number of Years5 Years
Yr
1 Yr50 Yr
Currency
Your Result

Fill in the details and
your result appears here.

Annual Growth Rate
Initial Value
Final Value
Total Return
Absolute Return %
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Did You Know?
Use CAGR to compare funds
Two funds both up 100% over different periods are not equal. Fund A: 100% in 5 years = 14.9% CAGR. Fund B: 100% in 8 years = 9.1% CAGR. Always compare CAGR, not absolute returns.

How to use this calculator

1

Enter initial value

The starting price or value of your investment.

2

Enter final value

The ending price or current value of your investment.

3

Enter number of years

The time period between initial and final values.

The formula explained

CAGR = (Final Value ÷ Initial Value)^(1 ÷ Years) − 1

CAGR smooths out annual fluctuations to give a single annualised growth rate. It answers: "If my investment grew at a steady rate every year, what would that rate be?"

An investment growing from ₹10L to ₹18L in 5 years has a CAGR of 12.47% — even if individual years varied widely.

Frequently Asked Questions

What is CAGR?

Compound Annual Growth Rate is the rate at which an investment would have grown if it grew at a steady rate annually. It eliminates volatility to give a single comparable number.

How is CAGR different from absolute return?

Absolute return is the total percentage change (e.g. 80%). CAGR adjusts for time — 80% over 5 years is 12.47% CAGR. Over 10 years the same 80% is only 6.05% CAGR.

What is a good CAGR for mutual funds?

Large-cap equity funds in India have historically delivered 12–15% CAGR over 10+ years. Small-cap funds 15–18%. Debt funds 6–8%.

Can CAGR be negative?

Yes. If the final value is less than the initial value, CAGR will be negative — indicating the investment lost value on an annualised basis.

What is a good CAGR for investments?

Nifty 50 has delivered approximately 12-15% CAGR over long periods. Real estate returns 8-12% CAGR in India. Fixed deposits deliver 6-7%. A CAGR of 12%+ for equity investments over 10+ years is considered strong.

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