CAGR Calculator
CAGR is the single most useful number for comparing investments — it tells you the annual growth rate needed to take your money from A to B, accounting for compounding. Use it to evaluate mutual funds, stocks, and even real estate.
📐 The CAGR Formula
CAGR = (End Value ÷ Start Value)1/Years − 1
- CAGR
- 20.11%
- Absolute Return
- 150.00%
- Total Gain / Loss
- ₹1,50,000
- Duration
- 5 years
Frequently Asked Questions
What is CAGR?
CAGR — Compounded Annual Growth Rate — is the rate at which an investment grows from its initial to its final value over a period, assuming profits are reinvested each year. It smooths out year-to-year volatility.
How is CAGR different from absolute return?
Absolute return shows total percentage gain regardless of time (e.g. 150% over 10 years). CAGR shows the annualised rate (e.g. 9.6% per year). CAGR is more useful for comparing investments with different durations.
What is a good CAGR for equity investments?
The Nifty 50 has delivered ~12% CAGR over 20+ years. A CAGR above 12% for equity is considered good. For fixed income (FD, PPF), 6–8% CAGR is typical.
Can CAGR be negative?
Yes. If your investment lost value (final value < initial value), the CAGR is negative. For example, ₹1 lakh shrinking to ₹80,000 in 5 years gives a CAGR of −4.35%.
What is the formula for CAGR?
CAGR = (End Value / Begin Value)^(1/Years) − 1. For example, ₹1L growing to ₹2.5L in 5 years: (2.5/1)^(0.2) − 1 = 0.2011 = 20.11% CAGR.