CAGR Calculator

CAGR (Compound Annual Growth Rate) is the rate at which an investment would have grown if it grew at a steady annual rate, compounded annually. It is the most useful single number for comparing investments held over different time periods — for example, comparing a 3-year mutual fund return against a 5-year FD.

CAGR = (Final Value ÷ Initial Value)^(1÷n) − 1, where n is the number of years. Expressed as a percentage, multiply by 100. For example, an investment that grew from ₹1 lakh to ₹1.61 lakh in 5 years has a CAGR of (1.61)^(1/5) − 1 = 10%.

Absolute return tells you the total percentage gain (e.g. 60% over 5 years). CAGR annualises that gain so you can compare investments across different time horizons (e.g. 60% absolute return over 5 years = 9.86% CAGR per year). CAGR is a fairer yardstick for comparison.

In India, a CAGR of 12–15% over 10+ years from a diversified equity mutual fund is considered good. The Nifty 50 has delivered approximately 12–13% CAGR over the past 20 years. Actively managed large-cap funds typically aim to beat this by 1–3%.

Yes. If your final value is less than the initial value, the CAGR will be negative, indicating a loss. A CAGR of −10% means the investment lost 10% of its value each year on a compounded basis.