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).

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How is it calculated?

CAGR = \left(\frac{EV}{BV}\right)^{\frac{1}{n}} - 1

Where 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%.

Frequently Asked Questions

Why is CAGR better than simple returns?
CAGR accounts for compound growth over time, smoothing out yearly volatility and providing a uniform annual metric to compare performance across different assets.
Does CAGR represent actual annual market returns?
No, CAGR is a geometric progression ratio. It indicates the steady rate at which an investment would have grown if it grew at a constant rate, rather than actual fluctuating yearly returns.
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Results are estimates and should not be considered financial advice.

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