CAGR Calculator
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CAGR Calculator Guide
Compound Annual Growth Rate (CAGR) is the rate at which an investment grows from its initial value to its final value, assuming it grows at a steady rate and profits are reinvested each year. It smooths out volatility to give a single clean annual growth figure — making it the most reliable way to compare investments over time.
An investment grows from ₹1,00,000 to ₹2,50,000 in 5 years:
Final Value
The ending value of your investment at the close of the period.
Initial Value
The starting value or principal amount invested at the beginning.
Years (n)
Number of years the investment was held. Fractional years are allowed.
Result: %
CAGR is expressed as a percentage per year — multiply by 100 to read it.
Below 8%
Beats savings account but barely keeps up with inflation. Typical of bonds or FD returns.
8% – 15%
Good. Typical of large-cap mutual funds, Nifty 50, and diversified equity portfolios.
Above 15%
Excellent. Mid/small-cap funds, growth stocks. Warren Buffett averaged ~20% CAGR over 50+ years.
Compare Investments
CAGR lets you compare a mutual fund vs. real estate vs. gold on the same scale, regardless of investment size.
Set Realistic Goals
Know exactly how much a 12% CAGR grows ₹5 lakh into over 10 years — perfect for retirement planning.
Evaluate Fund Performance
Mutual funds, ETFs, and portfolios are always rated by their 1yr, 3yr, and 5yr CAGR — now you know how to read them.
Q1: What is a good CAGR for mutual funds in India?
A CAGR of 12–18% is considered good for equity mutual funds in India. The Nifty 50 has delivered approximately 12–14% CAGR over the long term.
Q2: Is CAGR the same as annual return?
Not exactly. Annual return measures each year individually. CAGR smooths all years into one equivalent rate, removing year-to-year volatility — making comparisons much easier.
Q3: What is CAGR vs XIRR?
CAGR assumes a single lump-sum investment. XIRR (Extended Internal Rate of Return) is used when you make multiple investments at different dates — like monthly SIPs.
Q4: Can CAGR be negative?
Yes. If the final value is less than the initial value, CAGR will be negative — meaning the investment lost money over that period. A negative CAGR is a red flag for any asset.