CAGR Calculator
Calculate the Compound Annual Growth Rate of any investment. CAGR shows you the smoothed annual return, eliminating year-to-year volatility.
CAGR
20.11%
per annum
Absolute Return
150.0%
total
Your investment grew from ₹1.00 L to ₹2.50 L at 20.11% CAGR over 5 years
Frequently Asked Questions
What is CAGR?
CAGR (Compound Annual Growth Rate) represents the smoothed annual rate at which an investment grows. Formula: CAGR = (Final Value / Initial Value)^(1/Years) - 1. It eliminates year-to-year volatility to show a consistent growth rate.
What is the difference between CAGR and absolute return?
Absolute return shows total percentage growth regardless of time (e.g., 150% in 5 years), while CAGR shows annualized growth (e.g., 20% per year). CAGR is better for comparing investments over different time periods.
What is a good CAGR in India?
In Indian markets: 7-8% for FDs/debt funds, 12-14% for Nifty 50/large-cap, 15-20% for mid-cap, 18-25% for small-cap over 10+ year periods. Anything above 15% CAGR over 5+ years is considered excellent.
How to calculate CAGR of a mutual fund?
Use the formula: CAGR = (Current NAV / NAV at purchase)^(1/years) - 1. Example: NAV grew from ₹100 to ₹250 in 5 years → CAGR = (250/100)^(1/5) - 1 = 20.11% per annum. Or simply use our calculator above.