CAGR Calculator

CAGR (Compound Annual Growth Rate) measures the rate at which an investment grows from its starting value to its ending value, assuming it grows at a steady rate compounded annually. It smooths out yearly volatility to give a single annual growth figure.

CAGR = (End Value / Start Value)^(1/Years) − 1. For example, if ₹1 lakh grew to ₹2.5 lakh in 5 years: CAGR = (2,50,000/1,00,000)^(1/5) − 1 = 2.5^0.2 − 1 = 20.11%.

Nifty 50 index funds have delivered ~12% CAGR over the last 10 years. Large-cap active funds average 10–13%, mid-cap 13–16%, and small-cap 14–18%. A CAGR above 15% over 10+ years is considered excellent.

Absolute return is total percentage gain (e.g. 150% over 5 years). CAGR converts this into an annualised rate (e.g. ~20.1% per year). CAGR is more useful for comparing investments of different durations.

CAGR works for a single lump-sum investment. XIRR (Extended Internal Rate of Return) handles multiple cash flows at irregular intervals — like a SIP where you invest monthly. Use CAGR for lump-sum, XIRR for SIP performance.

Yes. If your investment lost value (end value < start value), CAGR will be negative. This means you lost money at that annualised rate each year.