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CAGR Calculator

Calculate your Compounded Annual Growth Rate on any investment.

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CAGR Calculator
Calculate your Compounded Annual Growth Rate on any investment.
Initial investment value (₹)
Final investment value (₹)
Investment period (years)
Initial value
₹1.00 L
Final value
₹2.50 L
Period
5 years
CAGR
20.11% p.a.
Invest for better CAGR →

For illustration only. Subject to market risks. Not investment advice.

⚠️ Disclaimer: Results are for illustration only. Mutual Fund investments subject to market risks. Assumed returns may not reflect actual performance. Read all scheme-related documents carefully. Not investment advice.
About this calculator

CAGR Calculator — explained

The CAGR (Compound Annual Growth Rate) Calculator computes the smoothed annual growth rate of any investment over a period. CAGR is the standard return metric in India and globally for comparing investments of different sizes, durations, and asset classes — mutual funds, stocks, real estate, business revenue, anything that grows over time. Enter your initial value, final value, and the holding period to see the effective annual return rate, accurate to two decimal places.

Mutual fund factsheets, stock analyst reports, real-estate price-growth comparisons, and personal-portfolio benchmarking all use CAGR. Use this free online CAGR calculator to compare actual fund returns against the Sensex/Nifty benchmark, evaluate whether your real estate has actually beaten inflation, or compute the annualised growth of any investment. Backed by AMFI Registered MFD Nithin Finserv.

What is the CAGR Calculator?

CAGR (Compound Annual Growth Rate) is the constant rate at which an investment would have grown if it had compounded steadily over a period — even if actual year-by-year returns were uneven. It is the standard return metric used by mutual funds, stocks, real estate, and any growth-comparable investment. CAGR strips out volatility and shows the effective annual return.

How it works — the formula

CAGR = (Final Value / Initial Value)^(1 / years) − 1, expressed as a percentage. The calculator takes the nth root of the value ratio and subtracts 1. This produces the constant annual rate that would have transformed your initial value into the final value over the period — irrespective of how uneven the actual journey was.

How to use this calculator

  1. 1Enter the initial investment value in rupees
  2. 2Enter the final or current value of the investment
  3. 3Enter the holding period in years (or fractional years)
  4. 4Read the CAGR percentage — the constant annual rate equivalent to your actual gain
  5. 5Compare your portfolio CAGR with Nifty 50 / Sensex CAGR to benchmark performance

Key features

  • ✓Exact CAGR maths matching mutual fund disclosure standards
  • ✓Adjustable initial value, final value, and tenure
  • ✓Works for any asset class — MFs, stocks, real estate, business
  • ✓Comparable across timeframes and amounts
  • ✓Free, mobile-friendly, no signup

Frequently asked questions

What's a good CAGR for mutual funds in India?
Equity mutual funds have historically delivered 10–14% CAGR over 10+ year horizons. Anything consistently beating the index (after costs) is considered good. Debt funds typically deliver 6–8% CAGR.
Is CAGR the same as average return?
No. Average return is the simple mean of yearly returns and ignores compounding. CAGR is the constant rate that would take you from start to end value — it accounts for compounding and is the more accurate metric for comparison.
What's the difference between CAGR and XIRR?
CAGR works when there's a single investment and a single redemption. XIRR is used when there are multiple cash flows over time (e.g., SIPs, additional lumpsums) — it accounts for the timing of each instalment, giving a true money-weighted annualised return.
Can CAGR be negative?
Yes. If the final value is less than the initial value, CAGR is negative — reflecting a net annualised loss. Useful for identifying underperforming investments.
What CAGR do top Indian mutual funds achieve?
Top diversified equity funds have historically delivered 14–18% CAGR over 10–15 year periods, though past performance is not a guarantee. The Nifty 50 total-return CAGR has been ~12% over the last 20 years.
Should I use 1-year, 3-year, or 5-year CAGR for fund comparison?
Use 5-year and 10-year CAGR for serious comparison. 1-year and 3-year CAGR can be skewed by recent market conditions. SEBI mandates that mutual funds disclose 1Y, 3Y, 5Y, and since-inception CAGR.
How does CAGR differ from simple return?
Simple return = (Final − Initial)/Initial. It doesn't account for time. A 100% simple return in 2 years vs 10 years are very different — the 2-year case has 41% CAGR, the 10-year case only 7% CAGR. Always use CAGR for time-comparable analysis.
Is CAGR taxed in India?
CAGR is a measurement, not an income. The underlying capital gains (Final − Initial) are taxable based on holding period and asset class — equity LTCG at 12.5% above ₹1.25L/year, etc.
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