CAGR Calculator
Calculate the Compound Annual Growth Rate of any investment.
Your inputs
CAGR smooths an investment's actual year-to-year ups and downs into a single average annual growth rate over the period.
Estimates only. Figures are indicative and do not constitute financial advice.
About the CAGR Calculator
"CAGR calculator" is searched constantly by investors trying to make sense of a mutual fund or stock's performance — because year-to-year returns are messy and inconsistent, but CAGR (Compound Annual Growth Rate) smooths all of that into one clean annual percentage that's easy to compare across investments.
CAGR answers the question: if this investment had grown at a constant rate every year instead of its actual bumpy path, what would that rate be? It's calculated from just three numbers — your initial value, final value, and the number of years — using the formula (Final/Initial)^(1/years) − 1. This makes it the standard way to compare a mutual fund's 5-year return against a stock's 3-year return against a fixed deposit's guaranteed rate, all on equal footing, even though their actual year-to-year paths looked completely different. Use this whenever a fund factsheet shows you '5-year CAGR: 14.2%' and you want to verify it yourself, or when comparing two investments with different starting points and holding periods.
How to use this calculator
- Enter your initial investment value.
- Enter the current or final value.
- Enter the number of years held.
- See your CAGR and absolute gain.
Frequently asked questions
›What is the difference between CAGR and absolute return?
Absolute return is the total percentage gain over the entire period regardless of time, while CAGR expresses that same gain as an equivalent constant annual growth rate, making different time periods comparable.
›Is CAGR the same as actual year-by-year returns?
No — CAGR is a smoothed average; your investment's actual year-to-year returns were almost certainly different (sometimes negative) even if the CAGR looks steady.
›What's a good CAGR for equity mutual funds in India?
Historically, diversified equity mutual funds in India have delivered CAGRs in the roughly 10-15% range over long periods, though this varies significantly by fund and time period, and isn't guaranteed.