CAGR Calculator
Find the Compound Annual Growth Rate of any investment, from initial value, final value, and time period. Free, no login, nothing stored.
Works for stocks, mutual funds, gold, real estate, or any single lump-sum investment.
What Is CAGR?
CAGR (Compound Annual Growth Rate) is the constant annual rate at which an investment would need to grow, compounding every year, to go from its starting value to its ending value over a given period. It smooths out the year-to-year ups and downs of an investment into a single, comparable growth figure, which is why it's the standard way to compare mutual funds, stocks, and other investments over different time periods.
Free, No Login, No Data Stored
This calculator runs entirely in your browser. There is no sign-up, no account, and nothing you enter is saved, tracked, or sent anywhere. It's free to use as many times as you need.
How to Use This CAGR Calculator
- Enter the Initial Investment Value - what you started with.
- Enter the Final Investment Value - what it's worth now, or at the end of the period you're measuring.
- Choose the Time Period in years, using the quick options or typing a custom value.
- The result panel shows your Absolute Gain, Absolute Return, Growth Multiple, and CAGR - all updating instantly.
CAGR Formula
CAGR = ( (Final Value / Initial Value) ^ (1 / Years) - 1 ) x 100
Absolute Return = ( (Final Value - Initial Value) / Initial Value ) x 100
CAGR assumes smooth, compounded growth every year, even though real investments rarely grow at exactly the same rate each year. It's a useful comparison tool, not a guarantee of how the investment actually behaved year to year.
CAGR vs Absolute Return
| Metric | What It Shows | Best Used For |
|---|---|---|
| Absolute Return | Total percentage gain over the entire period, regardless of how long it took | Quick total gain/loss check, especially for periods under a year |
| CAGR | The equivalent constant annual growth rate, accounting for compounding over time | Comparing investments held for different lengths of time |
A 100% absolute return sounds identical whether it took 2 years or 10 years, but the CAGR is very different - roughly 41% a year over 2 years versus about 7.2% a year over 10 years. CAGR corrects for this by putting every result on the same annual basis.
Who Is This Calculator For?
- Mutual fund and stock investors comparing returns across different holding periods.
- Anyone evaluating a lump-sum investment - gold, real estate, fixed deposits, or a single stock purchase.
- Financial planners and students learning how compounded growth is measured and compared.
Note: CAGR is designed for a single lump-sum investment with one starting and one ending value. For SIPs or any investment with multiple cash flows at different times, XIRR (Extended Internal Rate of Return) gives a more accurate picture, since it accounts for the timing of each individual contribution.
Illustrative Long-Term CAGR Ranges (India)
| Asset Class | Typical Long-Term CAGR Range |
|---|---|
| Bank Fixed Deposits | ~6% to 7.5% |
| PPF / EPF | ~7% to 8.2% |
| Gold (long-term) | ~8% to 10% |
| Nifty 50 / Sensex (long-term) | ~11% to 14% |
| Real Estate (varies widely by location) | ~6% to 10% |
These are broad, illustrative historical ranges only, not a forecast or investment recommendation. Actual returns vary significantly by exact time period, specific instrument, and market conditions. Past performance does not guarantee future results - consult a registered investment advisor before making investment decisions.
Frequently Asked Questions
What is a good CAGR for an investment?
This depends heavily on the asset class, time period, and risk taken. There's no single "good" number that applies everywhere - a CAGR should be judged relative to comparable benchmarks and your own investment goals and risk tolerance, not as an absolute standard.
Can CAGR be negative?
Yes. If your final value is lower than your initial value, CAGR will be negative, reflecting an average annual decline over the period.
Is CAGR the same as the average annual return?
No. A simple average of yearly returns can be misleading because it ignores the effect of compounding and the order in which gains and losses occurred. CAGR accounts for compounding and gives a more accurate long-term growth figure.
Should I use CAGR to evaluate my SIP returns?
Not directly. CAGR works best for a single lump-sum investment. Since a SIP involves multiple investments made at different times, XIRR is the more appropriate metric, as it accounts for the exact timing and amount of each instalment.
Does CAGR account for inflation?
No, this CAGR figure is a nominal growth rate. To understand real, inflation-adjusted growth, you would need to separately subtract an estimated inflation rate from the CAGR result.
Is this calculator free to use?
Yes, completely free, with no login and no data stored, and works on both mobile and desktop.
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