CAGR Calculator

Determine the Compound Annual Growth Rate

CAGR (Compound Annual Growth Rate) tells you the steady annual rate at which your investment would have grown. It smooths out year-to-year volatility and is the best way to compare mutual fund performance over time.
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Yrs
CAGR (%)
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Absolute Return (%) -
📈 CAGR Insight

CAGR smooths out annual fluctuations. Good for comparing mutual fund performance.

Growth Visualization
📋 Assumptions Used v1.0

View full assumptions changelog →

  • CAGR: Assumes smooth annual growth (actual returns fluctuate year-to-year).
  • Dividends: Not included unless reinvested in final value.
  • Inflation: Not adjusted. Real CAGR = Nominal CAGR - Inflation.
  • Benchmark: Nifty 50 20-year CAGR is ~12.7%. Good funds beat this.

Data verified: January 2026

🧮 How This Calculator Works

Inputs:

  • Initial Value: Starting investment
  • Final Value: Ending value
  • Duration (n): Number of years

Formula:

CAGR = (Final / Initial)1/n - 1

Interpretation:

  • CAGR: Annual growth rate as if growth were steady.
  • Absolute Return: (Final - Initial) / Initial × 100 = total gain %.

CAGR smooths out volatility — use it to compare fund performance.

What is CAGR?

Compound Annual Growth Rate (CAGR) is the rate at which an investment would have grown if it had grown at a steady rate. It is the best metric to judge mutual fund performance.

Formula: (Final Value / Initial Value)^(1 / n) - 1