CAGR Calculator
About CAGR (Compound Annual Growth Rate) Calculator
The CAGR Calculator helps you measure how much an investment has grown on average every year over a specific time period. It smooths out yearly fluctuations to show the consistent annual growth rate — perfect for evaluating mutual funds, stock returns, and business performance.
Formula (Simple Explanation)›
CAGR = [(Final Value / Initial Value)^(1 / Years)] − 1
Where: Final Value is the ending amount, Initial Value is the starting amount, and Years is the total duration of the investment.
Example:
Input: If you invested ₹1,00,000 and it grew to ₹1,33,100 in 3 years
Output: CAGR = [(1,33,100 / 1,00,000)^(1/3)] − 1 = 10% per year.
Steps to Use:
- Enter your initial investment amount (₹).
- Enter the final or current value of your investment (₹).
- Enter the investment duration in years.
- Click 'Calculate' to see your CAGR percentage and compare long-term returns.
Frequently Asked Questions
What is CAGR in simple terms?›
CAGR (Compound Annual Growth Rate) shows how much your investment would have grown each year if it had grown at a steady rate. It’s a useful measure of long-term performance.
Why use CAGR instead of ROI?›
ROI gives total return, while CAGR gives average yearly growth. CAGR helps you compare investments that span different time periods.
What is a good CAGR rate for investments?›
For equity mutual funds, a CAGR of 10–15% is considered strong. For fixed deposits or bonds, a CAGR of 5–7% is typical.
Can CAGR be negative?›
Yes. If the final value of an investment is less than its initial value, CAGR will be negative — showing a loss over time.
Does CAGR include inflation or compounding frequency?›
No. CAGR shows average annual growth, assuming yearly compounding. It doesn’t adjust for inflation or interim volatility.