What is CAGR Calculator?
A CAGR (Compound Annual Growth Rate) Calculator measures the average annual growth rate of an investment over a specified time period, assuming profits are reinvested. CAGR is the most accurate metric to evaluate investment performance - whether in stocks, mutual funds, real estate, or gold. Unlike simple averages, CAGR accounts for compounding, giving you the true growth rate of your portfolio. Perfect for comparing different investments, setting financial goals, and planning long-term wealth creation!
Formula
CAGR = [(Ending Value ÷ Beginning Value)^(1 ÷ Number of Years)] - 1
Example: Invested ₹1,00,000, became ₹2,00,000 in 5 years
CAGR = [(2,00,000 ÷ 1,00,000)^(1÷5)] - 1 = [2^0.2] - 1 = 1.1487 - 1 = 0.1487 = 14.87%
Benefits of Using CAGR Calculator
Accurate Growth Measurement – True annual return including compounding
Investment Comparison – Compare stocks, MFs, FDs, real estate returns
Long-Term Planning – Set realistic financial goals and targets
Visual Growth Chart – See your investment growth over time
Benchmark Performance – Compare against Nifty, Sensex, gold returns
Free & Instant – Calculate CAGR in seconds with detailed breakdown
Pro Tip: CAGR doesn't show volatility! A 15% CAGR could mean steady 15% yearly growth OR wild swings averaging 15%. Always check year-by-year returns for complete picture!
Frequently Asked Questions
Good CAGR varies by asset: Equity MFs (12-15%), Large-cap stocks (10-12%), Mid/Small-cap (15-18%), Fixed Deposits (6-7%), Gold (8-10%), Real Estate (8-12%). Above 15% CAGR is excellent for equities. Nifty 50 historical CAGR: ~12%.
Absolute Return = Total % gain without considering time. CAGR = Annualized return accounting for compounding. Example: ₹1L becomes ₹2L in 5 years. Absolute Return = 100%, but CAGR = 14.87% per year. CAGR is better for comparing investments!
Formula: CAGR = [(Final Value ÷ Initial Value)^(1 ÷ Years)] - 1. Example: ₹50,000 invested became ₹1,00,000 in 6 years. CAGR = [(1,00,000 ÷ 50,000)^(1÷6)] - 1 = [2^0.1667] - 1 = 1.1225 - 1 = 12.25%.
Yes! Negative CAGR means your investment lost value. Example: ₹1,00,000 became ₹80,000 in 3 years = CAGR of -7.2%. This shows the average annual loss rate.
CAGR is for lump-sum investments with single entry/exit. XIRR is for SIP/multiple investments at different times. For SIPs, use XIRR. For one-time investments, use CAGR.
BSE Sensex delivered ~16% CAGR from 1991 to 2025 (34 years). Nifty 50 CAGR since 1996: ~14%. This shows long-term equity investing power despite short-term volatility!