CAGR Calculator — Growth Rate
Measure the true annualised growth of any investment using CAGR. Enter the starting value, ending value, and the time period to get a single percentage that captures how your money compounded over the years. CAGR is widely used to compare mutual funds, stocks, real estate, and other assets on an apples-to-apples basis. Unlike simple averages, it accounts for the effect of compounding, making it a far more reliable measure of long-term investment performance.
CAGR Calculator
Compound annual growth
Results
Adjust the sliders and click Calculate
Frequently Asked Questions
What exactly does CAGR tell you?
CAGR tells you the smooth, annualised rate at which an investment grew from its beginning value to its ending value over a specific period. It strips out the year-to-year volatility and gives you one clean number. For example, if you invested Rs 1 lakh and it became Rs 2 lakh in 5 years, the CAGR is about 14.87% — even though the actual returns in each year may have been wildly different.
How is CAGR different from average return?
Average return simply adds up each year's return and divides by the number of years, which can be misleading. If an investment goes up 50% one year and drops 50% the next, the average return is 0%, but you actually lost 25% of your money. CAGR accounts for compounding and gives you the true annualised growth rate based on starting and ending values.
Can CAGR be used to compare different investments?
Yes, CAGR is one of the best tools for comparing investments across different time periods and asset classes. Whether you are comparing a mutual fund's 5-year return to an FD's 5-year return, or checking how your stock portfolio performed against the Nifty 50, CAGR puts everything on an equal footing by normalising returns to a per-year basis.