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.

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CAGR Calculator (Compound Annual Growth Rate)

Initial Value (₹)
Final Value (₹)
Investment Period: 10 Years
Final Value₹2,50,000
Compound Annual Growth Rate (CAGR)9.6% p.a.
Absolute Gain₹1,50,000
Total Return150%
Ending Value₹2,50,000
1₹

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.

1STEP

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.

2STEP

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.

3STEP

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.

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Frequently Asked Questions

A CAGR Calculator computes the Compound Annual Growth Rate of an investment. Enter the starting value, ending value, and number of years to instantly get the annualised return, a single, consistent percentage that represents how fast your investment grew each year on average over the full period.

CAGR = (Ending Value ÷ Beginning Value)^(1/n) – 1, where n is the number of years. For example, an investment growing from ₹1,00,000 to ₹2,50,000 in 10 years has a CAGR of approximately 9.6% per annum. The result shows the equivalent constant annual growth rate needed to reach the same ending value.

Absolute return tells you the total gain as a percentage, regardless of time. A 100% absolute return over 2 years and a 100% return over 10 years are very different, but both show 100% absolute return. CAGR accounts for the time period and shows an annualised rate, making it possible to compare investments of different durations on equal terms.

No. CAGR is designed for lump sum investments with one start value and one end value. SIPs involve multiple investments at different points in time, so CAGR does not accurately measure SIP returns. For SIPs, XIRR, which accounts for each instalment's timing, is the correct return metric.

There is no universal benchmark, but as a reference: large-cap equity funds have historically delivered 10%–13% CAGR over long periods; mid-cap and small-cap funds have delivered higher but with more volatility. Debt funds typically deliver 6%–8% CAGR. Always compare a fund's CAGR against its benchmark index over the same period.

CAGR measures the growth rate between a single start value and a single end value over a fixed period, suitable for lump sum investments. XIRR accounts for multiple cash flows at different dates, making it the right metric for SIPs, partial withdrawals, or any investment with irregular contribution timings. Both are available in Excel and financial calculators.