What is CAGR Calculator?
Calculate CAGR (Compound Annual Growth Rate) to find the annualized return of any investment over multiple years Simply enter your values, and the calculator instantly computes accurate results using standard financial formulas. All calculations are performed entirely in your browser — nothing is stored or transmitted.
Formula Used
Final Value = ending investment value | Initial Value = starting investment value | n = number of years | Multiply result by 100 for percentage
How to Use This Calculator
- Enter the initial investment value or purchase price
- Enter the final investment value at the end of the period
- Enter the number of years the investment was held
- Click Calculate to see CAGR percentage
- Compare CAGR across different investments to identify the best performer
Worked Example
Initial: ₹1,00,000 | Final: ₹2,50,000 | Period: 8 years → CAGR = (2.5)^(1/8) − 1 = 12.13% per annum
Why Use This Tool?
- Compare returns across investments of different durations
- Smooths out year-to-year volatility for a fair comparison
- Standard metric used in mutual fund and stock performance reporting
- Helps evaluate if an investment beat inflation or benchmark
Frequently Asked Questions
What is CAGR?
CAGR (Compound Annual Growth Rate) is the mean annual growth rate of an investment over a period longer than one year. It represents the rate at which an investment would have grown if it grew at a steady rate annually.
What is a good CAGR for an investment?
Equity mutual funds typically target 12-15% CAGR over long periods. Nifty 50 has delivered approximately 12% CAGR over 20 years. Real estate gives 8-12% CAGR. Fixed income gives 6-8% CAGR. Beat inflation (6%) to grow real wealth.
Is CAGR the same as annual return?
CAGR is the annualized return assuming compounding — it shows what consistent yearly growth rate would produce the same end result. Actual annual returns fluctuate. CAGR is a smoothed, normalized measure useful for comparison.
Can CAGR be negative?
Yes. If your final value is less than your initial investment, CAGR will be negative, indicating a loss. For example, ₹1 lakh declining to ₹80,000 over 3 years gives a CAGR of −7.1%.
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