Compound Annual Growth Rate (CAGR) Calculator
Find the accurate compound annual growth rate of your stocks, mutual funds, gold, or business revenue over time.
CAGR Analysis
Your smooth annual investment growth rates simplified:
Absolute Growth
The total cash increase from beginning value to ending value.
Compound Annual Rate
The geometric mean growth rate of your asset per year.
Total Multiplier
The factor by which your initial investment expanded (e.g., 2.5x growth).
How is it calculated?
CAGR = \left(\frac{EV}{BV}\right)^{\frac{1}{n}} - 1Where EV is Ending Value, BV is Beginning Value, and n is the time duration in years.
Worked Examples
₹1 Lakh investment grows to ₹2.5 Lakh in 5 years
The investment initial value is ₹100,000 and ending value is ₹250,000. Under CAGR, it grew at a compound annual rate of 20.11%.
Mutual Fund CAGR Analysis
A fund growing from NAV ₹10 to NAV ₹50 over 12 years has a CAGR of 14.35%.
CAGR (Compound Annual Growth Rate) Guide
What is CAGR?
Compound Annual Growth Rate (CAGR) is the rate at which an investment would have grown if it had grown at a steady, constant rate compounded annually over the tenure. It is a geometric progression ratio that provides a smooth annual return figure, ignoring yearly volatility.
CAGR is the industry standard for comparing the performance of mutual funds, stocks, real estate, and business revenues.
How CAGR is Calculated Mathematically
The mathematical formula for CAGR is:
CAGR = (Ending Value / Beginning Value)^(1 / Years) - 1
For example, if an investment of ₹1,00,000 grows to ₹2,50,000 over 5 years, the CAGR is (250,000 / 100,000)^(1/5) - 1 = 20.11%. This means the investment compounded at a rate of 20.11% annually.
Frequently Asked Questions
Why is CAGR preferred over Absolute Returns?
Does CAGR account for periodic SIP investments?
Results are estimates and should not be considered financial advice.