CAGR Calculator - Compound Annual Growth Rate
Calculate CAGR (Compound Annual Growth Rate) for your investments. Measure the true annualized return of any investment over time.
Calculate CAGR
Initial investment value
Current/final value
Investment duration
CAGR
24.57%
Initial Investment
₹1,00,000
Final Value
₹3,00,000
How to Use This CAGR Calculator
Using our CAGR Calculator is simple and takes just a few seconds. Enter your values using the sliders or input fields above, and the results will update instantly — no need to click a calculate button.
All calculations are performed in your browser using standard financial formulas. Your data is never stored or transmitted to any server, ensuring complete privacy.
The results shown are estimates based on the inputs you provide. For precise figures, consult with your bank or financial advisor. Use this tool for quick comparisons, planning, and understanding how different variables affect your financial outcomes.
Formula & Explanation
CAGR = (Ending Value / Beginning Value)^(1/n) - 1Where Ending Value = Current/final investment value, Beginning Value = Initial investment, n = Number of years. CAGR represents the constant rate at which an investment would have grown.
Calculation Examples
5-Year Growth
₹1L grew to ₹3L in 5 years
CAGR: 24.57%
Benefits
- Measure true returns
- Compare investments
- Smooth out volatility
- Benchmark performance
Use Cases
- Investment analysis
- Fund comparison
- Portfolio review
- Business growth measurement
About CAGR Calculator
Our CAGR Calculator helps you measure the true annualized growth rate of your investments. CAGR smooths out volatility and gives you a single growth rate that represents the geometric progression of your investment value over time.
Frequently Asked Questions
CAGR (Compound Annual Growth Rate) is the smoothed annual growth rate of an investment over a period. It tells you the steady rate at which your money grew each year, ignoring yearly volatility. If a mutual fund grew from ₹1 lakh to ₹3 lakh in 5 years, CAGR = (3/1)^(1/5) - 1 = 24.57% per year. This makes comparing investments of different durations meaningful and removes the distortion of a single bumper or bad year. Use the free CAGR Calculator on AbacusHand to calculate your exact result instantly.
CAGR formula: CAGR = (Ending Value / Beginning Value)^(1/Number of Years) - 1. Example: invested ₹2 lakh in 2020, now worth ₹4 lakh in 2025 (5 years). CAGR = (4/2)^(0.2) - 1 = 14.87%. This means your investment grew at an effective rate of 14.87% per year, even if individual years varied. SEBI mandates mutual funds to display 1-year, 3-year, and 5-year CAGR in all fact sheets. Use the free CAGR Calculator on AbacusHand to calculate your exact result instantly.
Absolute return is the total gain without considering time: if ₹1 lakh became ₹2 lakh, absolute return is 100% regardless of whether it took 2 years or 10 years. CAGR adjusts for time: the same doubling over 5 years = 14.87% CAGR, but over 10 years = only 7.18% CAGR. Absolute returns are misleading when comparing investments of different durations. Always compare mutual funds using CAGR. Use the free CAGR Calculator on AbacusHand to calculate your exact result instantly.
For Indian equity mutual funds, a good CAGR benchmark is: 3-year CAGR above 12%, 5-year CAGR above 14%, and 10-year CAGR above 12%. The Nifty 50 has delivered approximately 12–14% CAGR over the past 20 years. Small-cap funds have historically returned 16–20% CAGR over 10+ years but with significantly higher volatility. Debt funds typically offer 7–9% CAGR, slightly above inflation. Use the free CAGR Calculator on AbacusHand to calculate your exact result instantly.
CAGR works best for lumpsum investments with a single start and end point. XIRR (Extended Internal Rate of Return) handles irregular cash flows and is more accurate for SIP investments or partial withdrawals at different intervals. If you invest ₹5,000/month in a mutual fund via SIP over 3 years, XIRR gives the true annualised return — not CAGR. SEBI-regulated platforms and AMCs now display XIRR for all SIP-based performance comparisons. Use the free CAGR Calculator on AbacusHand to calculate your exact result instantly.