CAGR Calculator
Calculate the Compound Annual Growth Rate (CAGR) of any investment. Instantly find annual returns, absolute gains, and year-wise growth projections.
Calculate Compound Annual Growth Rate
Enter your investment values to find the CAGR. Works for mutual funds, stocks, FDs, real estate, or any asset class.
What is CAGR (Compound Annual Growth Rate)?
CAGR is the rate at which an investment grows from its initial value to its final value over a given time period, assuming profits are reinvested each year. It represents a "smoothed" annual growth rate, ignoring volatility.
CAGR Formula
CAGR = (Final Value / Initial Value) ^ (1 / Years) - 1
Multiply by 100 to get the percentage. For example, if ₹1,00,000 grows to ₹2,50,000 in 5 years, the CAGR = (2.5)^0.2 - 1 = 20.11% per year.
Why CAGR Matters for Indian Investors
- Mutual Funds: Compare the CAGR of different schemes to find the best performers
- Stocks: Calculate portfolio CAGR to benchmark against Nifty/Sensex
- Real Estate: Evaluate property appreciation over time
- Fixed Deposits: Compare with other investment options
CAGR vs Absolute Return
- Absolute Return tells the total gain (e.g., 150% over 5 years)
- CAGR tells the yearly equivalent gain (e.g., 20.11% per year)
- CAGR is more useful for comparing investments of different time periods
- Always use CAGR when comparing investments held for different durations
Good CAGR Benchmarks
- Nifty 50 (10-year): ~12-14% CAGR
- Small Cap Funds: ~15-18% CAGR (higher risk)
- Fixed Deposits: ~6-7% CAGR (low risk)
- PPF: ~7.1% CAGR (tax-free)
- Real Estate (metro): ~8-10% CAGR