CAGR Calculator
Calculate the Compounded Annual Growth Rate of your investments to understand their true annual performance.
Your inputs
Your estimate
Compound Annual Growth Rate
14.87%
Estimates use your inputs and assumed returns. Actual returns vary and are not guaranteed.
Quick answer
CAGR is the steady yearly rate that takes an investment from its starting value to its ending value. ₹1 lakh growing to ₹2 lakh in 5 years is a CAGR of about 14.87%, not the 20% a year simple division suggests.
About the CAGR Calculator
Compounded Annual Growth Rate (CAGR) smoothes out returns and tells you what your investment yielded annually as if it had grown at a steady rate. It is essential for comparing mutual funds, stocks, or real estate performance.
What is the formula?
CAGR = (Final value ÷ Initial value)^(1 ÷ years) − 1.
Worked example
(₹2,00,000 ÷ ₹1,00,000)^(1 ÷ 5) − 1 = 14.87% a year. For SIPs with many dated instalments, use XIRR instead of CAGR.
Frequently asked questions
Why is CAGR better than Absolute Return?
Absolute return doesn't account for time. CAGR brings everything to an annual basis for fair comparison.
Does CAGR include taxes?
Standard CAGR provides pre-tax returns. Post-tax returns depend on the asset class and your tax slab.
Related guides
Reviewed by Vikas Gupta, AMFI-registered Mutual Fund Distributor (ARN-178652). Last updated . Mutual fund investments are subject to market risks, read all scheme related documents carefully. Mutual fund distribution by Korlipara Vikas Gupta, AMFI-registered Mutual Fund Distributor, ARN-178652. Distributors earn commission from fund houses on regular plans. Content and calculators on this site are for education, not personalised investment advice. Illustrations use assumed returns, which are not guaranteed.