CAGR Calculator — Compound Annual Growth Rate Calculator

How to Use CAGR Calculator

1Enter the required values in the input fields above.
2Click the Calculate button or results update instantly as you type.
3View your results in the output panel below the inputs.
4Adjust any values to recalculate instantly.

Formula & Method

Worked Example

Frequently Asked Questions

What is CAGR and why is it important?

Compound Annual Growth Rate (CAGR) measures the mean annual growth rate of an investment over a specified period assuming profits are reinvested. It smooths out volatility to give a single comparable rate. It's used to compare returns across investments, mutual funds, and business metrics.

What is the difference between CAGR and absolute return?

Absolute return is the total percentage gain/loss from initial to final value (e.g., ₹1L grew to ₹2L = 100% absolute return). CAGR accounts for time — the same 100% over 5 years = 14.87% CAGR, while over 10 years = 7.18% CAGR. CAGR is more useful for comparing investments held for different periods.

What is a good CAGR for investments in India?

Equity mutual funds (large cap): 10-13% CAGR long-term. Nifty 50 CAGR over 20 years: ~13-15%. Real estate: 8-12% CAGR in metro cities. Gold: ~10% CAGR over 10 years. FD: 6.5-7.5% CAGR. PPF: 7.1% CAGR (tax-free). Inflation: ~6-7% CAGR, so real returns matter more.

What are the limitations of CAGR?

CAGR assumes steady growth every year, which never happens in reality. It doesn't show volatility or risk. Two investments can have the same CAGR but very different risk profiles. For volatile investments, use Standard Deviation and Sharpe Ratio alongside CAGR. CAGR also ignores interim cash flows.