CAGR Calculator – Calculate the Annualised Return on Any Investment
This CAGR Calculator computes the Compound Annual Growth Rate of any investment over a specified period. Enter the initial investment value, the final value, and the number of years to instantly see the annualised growth rate. Use it to compare how different investments, mutual funds, stocks, FDs, or any asset, have actually grown on a consistent annual basis.
Planning a financial goal or looking for the best offers? Compare and calculate your requirements instantly with zero hassle.
CAGR Calculator (Compound Annual Growth Rate)
What is a CAGR Calculator?
A CAGR Calculator is an online tool that measures the Compound Annual Growth Rate of an investment over a given time period. Enter the initial value, the final value, and the number of years to instantly calculate the annualised growth rate, helping you compare the performance of different investments or financial products on a consistent annual basis.
How to Use CAGR Calculator – 3 Step Flow
Streamline your finances with an easy, automated process — calculate, plan, and achieve your financial goals.
Enter the initial and final investment values
Input the starting value of your investment (the amount originally invested or the value at the beginning of the measurement period) and the ending value (the current or final value of the investment). Both values should be in rupees and refer to the same investment, do not mix values from different instruments.
Enter the investment period
Input the number of years over which the investment grew from the initial to the final value. For periods less than a year, you can enter decimal values (e.g., 1.5 for 18 months). CAGR is most meaningful for periods of 1 year or more, for shorter periods, absolute return is typically a more useful measure.
Read and interpret your CAGR
The calculator returns the annualised compound growth rate as a percentage. Use this figure to compare against a benchmark (e.g., the Nifty 50 CAGR over the same period), or against other investments of the same duration. A higher CAGR indicates faster compounding growth, but always consider the risk taken to achieve it.
What CAGR Tells You, and What It Doesn't
CAGR is one of the most widely used metrics in investing, but it has important limitations that every investor should understand before relying on it alone.\n\nThe CAGR Formula:\nCAGR = (Ending Value ÷ Beginning Value)^(1/n) – 1\nWhere:\nEnding Value = Final investment value\nBeginning Value = Initial investment value\nn = Number of years\n\nExample 1, Mutual fund evaluation:\nInvestment: ₹1,00,000 | Final value: ₹2,50,000 | Period: 10 years\nCAGR = (2,50,000 ÷ 1,00,000)^(1/10) – 1 = (2.5)^0.1 – 1 ≈ 9.6% per annum\nThis means the investment grew at the equivalent of 9.6% compounded annually over 10 years.\n\nWhat CAGR does NOT capture:\n• Volatility: Two investments can have the same CAGR but very different year-to-year returns. CAGR only uses the start and end values, it ignores all the fluctuations in between.\n• Interim cash flows: If you made additional investments or withdrawals during the period, CAGR will not reflect the true return on your money. For such cases, XIRR is the more accurate metric.\n• SIP returns: CAGR is designed for lump sum investments. For a SIP where you invest monthly, XIRR is the correct measure, not CAGR.\n• Risk taken: A 15% CAGR from a small-cap fund involves far more risk than a 12% CAGR from a balanced fund. CAGR alone does not capture this distinction.\n\nCAGR represents a smoothed, hypothetical rate, actual annual returns will differ year to year. For SIP or multi-contribution investments, use the XIRR function in a spreadsheet or ask your mutual fund provider for the XIRR-based return.
| Investment | Initial Value | Final Value | Period | CAGR |
|---|---|---|---|---|
| Fund A | ₹1,00,000 | ₹2,50,000 | 10 yrs | 9.6% |
| Fund B | ₹1,00,000 | ₹3,00,000 | 10 yrs | 11.6% |
| FD | ₹1,00,000 | ₹1,98,000 | 10 yrs | 7.1% |
| Situation | Use CAGR | Use Absolute Return |
|---|---|---|
| Comparing two multi-year investments | ✓ | — |
| Evaluating a 3-month return | — | ✓ |
| Benchmarking against an index | ✓ | — |
| Single investment, any period under 1 year | — | ✓ |
Recommended Tools
SIP Calculator
Estimate the projected maturity value of monthly SIP investments at an expected annual return rate.
FD Calculator
Work out the CAGR-equivalent return on a fixed deposit to compare it with market-linked investments.
PPF Calculator
Estimate your PPF corpus and calculate the effective CAGR it delivers on your annual contributions.
NPS Calculator
Project your NPS retirement corpus and compare the expected CAGR against other investment options.
Financial Products for Every Need
Compare and explore personal loans, insurance, mutual funds, credit cards, and free credit score services in one place.
Instant Personal Loan
Compare loan options from multiple lenders with quick eligibility checks and flexible repayment plans.
Insurance Plans
Protect yourself and your family with health, term, and vehicle insurance from trusted providers.
Mutual Funds
Discover investment options designed to help you build long term wealth and financial stability.
Free Credit Score
Check your credit score online for free and stay updated with your credit health anytime.
Credit Cards
Compare credit cards based on rewards, cashback, travel benefits, and eligibility in one place.
