Calculate the Compound Annual Growth Rate (CAGR) of your investments. Enter the initial value, final value, and time period to find the annualized return rate.
CAGR (Compound Annual Growth Rate) measures the mean annual growth rate of an investment over a specified time period longer than one year. Unlike simple average returns, CAGR accounts for the effect of compounding, giving you a smoothed annual return rate. It's the most accurate way to compare investment performance across different time periods.
CAGR = (Final Value / Initial Value)^(1/Number of Years) − 1. For example: ₹1,00,000 growing to ₹2,00,000 in 5 years → CAGR = (200000/100000)^(1/5) − 1 = 14.87%. This means the investment grew at an average compounded rate of 14.87% per year.
Average return is the arithmetic mean of yearly returns, while CAGR is the geometric mean. Example: An investment goes up 50% in Year 1 and down 50% in Year 2. Average return = 0% but CAGR = -13.4% (₹100 → ₹150 → ₹75). CAGR reflects reality better.
Nifty 50 (10-year CAGR): ~12%. Gold (10-year CAGR): ~10%. FD (CAGR): 6-7%. PPF: 7.1%. Real estate: 7-10%. Use the CAGR calculator to check your own investment returns.
CAGR (Compound Annual Growth Rate) is the mean annual growth rate of an investment over a specified period longer than one year. It smooths out volatility and shows the true compounded return.
CAGR = (Final Value / Initial Value)^(1/Years) − 1, expressed as a percentage. For example, ₹1 lakh growing to ₹3 lakh in 10 years = CAGR of 11.61%.
No. CAGR gives the compounded rate assuming steady growth, while average return is the arithmetic mean of yearly returns. CAGR is more accurate for investment comparison.
A CAGR of 12-15% is considered good for equity mutual funds over 10+ years. Large-cap funds typically deliver 10-12%, while mid/small-cap funds can deliver 14-18%.
Yes. If the final value is less than the initial value, CAGR will be negative, indicating the investment lost value over the period.