Calculate the Compound Annual Growth Rate (CAGR) of any investment — whether it's a stock, mutual fund, real estate, or business revenue. Compare returns across different investments on a standardised, annualised basis.
The most reliable way to compare investment performance across any asset class or time period.
Any Investment Type
Calculate CAGR for stocks, mutual funds, FD, gold, real estate, or any investment with an initial and final value.
Compare Across Investments
CAGR standardises returns across different time periods, letting you compare a 3-year stock return with a 10-year property return fairly.
Reverse Calculation
Know your target CAGR? Calculate what final value your investment needs to reach — powerful for goal-based planning.
How to Use the CAGR Calculator
Three numbers. One clear annualised return figure.
1
Enter Initial Investment
Input the amount you invested or the initial value — for stocks, this is your buy price × quantity.
2
Enter Final Value
What is the current or final value of your investment? For mutual funds, this is current NAV × units held.
3
Set Number of Years
Enter the exact number of years between initial investment and final value for accurate CAGR calculation.
The CAGR Formula
The mathematics behind every CAGR calculation.
CAGR Formula
CAGR = (Final Value / Initial Value)^(1/n) - 1
Where n = number of years. CAGR represents the rate at which an investment would have grown if it grew at a constant rate annually. It smooths out volatility and gives a single, comparable growth rate. Multiply result by 100 for percentage.
Frequently Asked Questions
Everything you need to know about CAGR and how to use it for investment analysis.
CAGR (Compound Annual Growth Rate) is the steady rate of return that turns an initial investment into a final value over a given number of years, as if it grew at a constant annual rate. It is important because different investments run for different periods and have different volatility — CAGR lets you compare all of them on equal footing. For example, you can fairly compare a Nifty 50 index fund's 5-year CAGR against a real estate investment's 7-year CAGR, or a fixed deposit's 3-year CAGR, to make better allocation decisions.
For Indian mutual funds over a 10-year period: Large-cap funds — 10-13% CAGR is considered good. Multi-cap/Flexi-cap — 12-15%. Mid-cap — 13-17%. Small-cap — 14-18% (but higher risk). Index funds (Nifty 50) — historically 11-13% CAGR over long periods. Debt funds — 6-8%. For context, Nifty 50's 20-year CAGR (2004-2024) is approximately 13-14%. Any fund consistently delivering 15%+ CAGR over 10+ years is considered an exceptional performer.
Absolute Return = (Final Value - Initial Value) / Initial Value × 100 — doesn't account for time. CAGR = annualised return assuming constant growth — best for comparing investments held for full years. XIRR (Extended IRR) = annualised return for irregular cash flows — used when you have multiple SIP investments at different dates. For a single lumpsum held for a set period, CAGR and XIRR give the same result. For SIP investments, always use XIRR — CAGR will understate actual returns.
The Nifty 50 index has delivered approximately 11-13% CAGR over 10-year rolling periods historically. The exact figure depends on the start and end dates. For example: 2014-2024: ~12.8% CAGR; 2010-2020: ~9.6% CAGR (included COVID crash); 2004-2014: ~17.2% CAGR (included bull market). Over any 15+ year period, Nifty 50 has historically delivered positive CAGR, making it a benchmark for evaluating mutual fund performance. Funds that beat Nifty CAGR consistently over 5+ years are considered alpha generators.
Yes. If your investment has lost value over the period (final value < initial value), CAGR will be negative. A negative CAGR means you've lost money on an annualised basis. For example, if you invested ₹1 lakh in a stock and it's worth ₹70,000 after 3 years, the CAGR is approximately -11.2% per year. Negative CAGR over multiple years is a signal to re-evaluate the investment thesis.
For a stock investment: CAGR = (Current Market Value / Purchase Price)^(1/years held) - 1. Example: Bought RELIANCE at ₹1,500 in 2019, current price ₹2,800 in 2024 (5 years). CAGR = (2800/1500)^(1/5) - 1 = (1.867)^0.2 - 1 = 1.132 - 1 = 13.2% CAGR. If you received dividends, add their total value to the final amount for total return CAGR.
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