FinCalc

CAGR Calculator

Find the compound annual growth rate of an investment

₹
₹
Yrs

CAGR

24.57%

Compound Annual Growth Rate

Absolute Return

200.00%

Total return over the period

Total Gain

₹2,00,000

Growth at 24.57% CAGR

What is a CAGR Calculator?

CAGR (Compound Annual Growth Rate) tells you the smooth average annual return of an investment, stripping out year-to-year volatility. If your mutual fund grew from ₹1 lakh to ₹3 lakh in 8 years, the CAGR tells you the single annual rate that would produce the same result — much more useful than looking at individual yearly returns that bounced between -20% and +40%.

CAGR is the standard way to compare investment performance across different asset classes, time periods, and products. It's the number financial advisors and fund factsheets report because it gives a clean apples-to-apples comparison.

When to Use This Calculator

  • Calculating the actual return on a mutual fund or stock investment you've held
  • Comparing performance of two investments over the same or different time periods
  • Checking if a real estate investment has beaten inflation
  • Verifying claims about investment product returns
  • Setting realistic return expectations for financial planning

Key Terms

CAGR

Compound Annual Growth Rate — the constant annual return that turns an initial value into a final value over a given period. Formula: (Final/Initial)^(1/years) − 1.

Absolute Return

The total percentage gain or loss without considering time. If ₹1L became ₹3L, absolute return is 200%. Unlike CAGR, it doesn't tell you how long it took.

Point-to-Point Return

Return measured between two specific dates, which can be misleading if start or end dates coincide with market peaks or troughs.

Annualized Return

Any return converted to a per-year basis for comparability. CAGR is the most common form of annualized return.

Frequently Asked Questions

What's a good CAGR for investments in India?+
Equity (Nifty 50): 12-15% CAGR historically over 10+ years. Debt funds: 6-8%. FDs: 6-7%. Gold: 8-10%. Real estate: 5-8% (varies hugely by location). Inflation: 5-6%. Any investment should at least beat inflation to grow real wealth.
Is CAGR the same as average annual return?+
No. Average annual return is the arithmetic mean of yearly returns — it can overstate actual performance. If an investment returns +50% one year and -50% the next, the average return is 0%, but you've actually lost 25% of your money. CAGR correctly shows -13.4%.
Can I use CAGR for SIP investments?+
CAGR works for lump-sum investments with a single start and end value. For SIPs with multiple cash flows, use XIRR instead — it accounts for the timing and amount of each investment. Our XIRR Calculator handles this.
Why might my fund's CAGR differ from what I see online?+
The CAGR depends on the exact start and end dates. Fund factsheets report 1Y/3Y/5Y CAGR from the current date. Your personal CAGR depends on when you invested. Also, your actual returns are after exit load and taxes, while reported returns are pre-tax.