CAGR Calculator

Calculate the Compound Annual Growth Rate and absolute returns of your investments over time.

The beginning value of your investment.
The current or ending value.

Investment Growth Summary

Compound Annual Growth Rate (CAGR)

0.00%

Total Profit

₹0

Absolute Return

0.00%

What is a CAGR Calculator and Why Do You Need It?

The Compound Annual Growth Rate (CAGR) is one of the most accurate ways to measure and compare the past performance of your investments. Whether you are tracking mutual funds, stocks, real estate, or even business revenue, an online CAGR calculator helps you understand the steady rate at which your investment has grown every year, smoothing out market volatility.

Investors often get confused between CAGR and absolute returns. While absolute returns only show the total percentage of profit from start to finish, CAGR takes the time value of money into account. Knowing how to calculate CAGR ensures you get a realistic picture of your portfolio's annualized performance, making it easier to compare against benchmark indices or fixed-income assets like FDs.

Frequently Asked Questions About CAGR Calculation

What is the Compound Annual Growth Rate formula?
The formula used to calculate CAGR is: CAGR = [(Ending Value / Beginning Value) ^ (1 / Number of Years)] - 1. Our tool handles this complex mathematical equation instantly for you.
What is the difference between Absolute Return and CAGR?
Absolute return simply measures total growth as a percentage, regardless of how long it took. CAGR measures the average annual growth rate, assuming profits were reinvested at the end of each year. For investments held longer than one year, CAGR is a far better performance indicator.
What is considered a good CAGR for Mutual Funds?
A "good" CAGR depends entirely on the asset class and market conditions. Generally, for equity mutual funds in India, a long-term CAGR of 12% to 15% is considered very healthy and beats inflation comfortably.

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