Investment
CAGR Calculator
Computes the Compound Annual Growth Rate between an initial and final value — the standard way to compare investment performance.
Your details
₹
₹
yrs
CAGR
20.11%
Absolute gain
₹1,50,000
Absolute gain %
150.00%
A growth from ₹1,00,000 to ₹2,50,000 over 5 years works out to a CAGR of 20.11% — roughly equivalent to a fixed deposit compounding at that rate every year.
How this is calculated
CAGR = (Final Value / Initial Value)^(1/n) − 1, expressed as a percentage, where n = number of years.
Want to understand this better?
CAGR vs Absolute Return: How to Actually Judge a Stock's Performance
Frequently asked questions
What is a good CAGR for mutual funds?
10–14% CAGR over long periods is a commonly cited historical range for diversified Indian equity mutual funds — not a guarantee.
CAGR vs absolute return — what's the difference?
Absolute return is total % gain over the whole period; CAGR smooths that into an equivalent constant annual rate, making different time periods comparable.
Does CAGR account for volatility?
No — CAGR only looks at the start and end values, ignoring the path in between. Two investments with the same CAGR can have very different risk profiles.
How is CAGR different from XIRR?
CAGR assumes a single lump-sum investment; XIRR handles multiple cash flows on different dates (like SIPs). Use our XIRR Calculator for that case.