CAGR Calculator
Calculate the Compound Annual Growth Rate of your investment.
What is CAGR Calculator?
CAGR (Compound Annual Growth Rate) measures the average annual growth rate of an investment over a period, assuming profits are reinvested. A CAGR calculator computes the annualized return of your investment.
CAGR is the standard way to compare returns across investments with different tenures, such as mutual funds, stocks, and FDs.
How does the CAGR Calculator work?
Where n is the number of years. For example, an investment of ₹1,00,000 that grows to ₹2,00,000 in 5 years has a CAGR of about 14.87%.
CAGR smooths out year-to-year volatility and gives a single annualized figure.
How to use the CAGR Calculator?
- Enter the initial investment value.
- Enter the final value of the investment.
- Enter the number of years.
- The calculator shows the CAGR of your investment.
Example
Try the calculator with your own numbers
- Enter your values in the input fields above.
- Adjust the values to match your situation.
- The result updates instantly as you change the inputs.
Benefits of using the CAGR Calculator
- Compare returns of different investments fairly.
- Evaluate mutual fund and stock performance.
- Check if your investments beat inflation.
- Set realistic return expectations.
Who should use the CAGR Calculator?
- Individuals planning loans, investments, or retirement savings.
- Salaried employees estimating taxes, EMIs, and take-home pay.
- Small business owners tracking costs, margins, and cash flow.
- Students learning personal finance and investment concepts.
Tips for getting the most out of the CAGR Calculator
- Use realistic return rates — past performance does not guarantee future returns.
- Re-run the calculation whenever your income, expenses, or goals change.
- Compare a few scenarios (conservative, moderate, aggressive) before making a decision.
Frequently Asked Questions
What is a good CAGR for mutual funds?
Equity mutual funds have historically delivered 10-14% CAGR over long periods. Debt funds typically deliver 6-8%.
Does CAGR account for volatility?
No, CAGR is a smoothed annualized figure. Actual returns may vary significantly year to year.
How is CAGR different from absolute return?
Absolute return is the total growth over the entire period, while CAGR annualizes the growth, making it comparable across different tenures.
Planning your finances is easier when you can see the numbers clearly. Use this calculator regularly to stay on top of your goals and make informed decisions.
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