Calculate Compound Annual Growth Rate of your investment using starting value, final value, and investment period.
Want to measure how well your investments are performing? Use our free CAGR Calculator for India to understand your compound annual growth rate – the most accurate way to track your investment performance over time. Whether you're investing in stocks, mutual funds, or SIPs, this tool gives you a clear picture of your real returns.
What is a CAGR Calculator?
CAGR stands for Compound Annual Growth Rate. It tells you how much your investment grew on average, per year, over a period of time — assuming the profits were reinvested annually. The CAGR Calculator is a smart financial tool that calculates this growth rate based on your initial investment, final value, and time period.
For example, if you invested ₹1,00,000 and it became ₹2,00,000 in 5 years, the CAGR would tell you the consistent annual growth rate required to reach that amount.
How to Use the CAGR Calculator (Step-by-Step Guide)
- Enter the initial investment amount (e.g., ₹50,000)
- Enter the final value of the investment (e.g., ₹80,000)
- Input the number of years the investment was held
- Click on “Calculate” to get the CAGR in percentage form
The calculator will show your compound annual growth rate – how much your money grew every year on average.
Why Use the CAGR Calculator?
- Track True Investment Performance: CAGR is more accurate than average returns
- Smart Investment Comparison: Compare returns from mutual funds, SIPs, PPF, NPS, and stocks
- Helps in Portfolio Planning: Set realistic return expectations
- Easy to Use: No need for complex formulas or Excel sheets
Real-Life Use Cases of CAGR
- 🪙 Calculating CAGR of your SIP or lump sum mutual fund investments
- 🏠 Measuring property appreciation over a number of years
- 📉 Tracking growth of your business revenue over multiple years
- 💰 Comparing investment options like FD, PPF, NPS, stocks, or real estate
CAGR is ideal for long-term wealth planning, retirement forecasting, and performance analysis.
Formula for CAGR Calculation
The formula used by this calculator is:
CAGR = [(Final Value / Initial Value) ^ (1 / Time in Years)] – 1
The result is expressed as a percentage, representing the annual growth rate.
Frequently Asked Questions (FAQs)
Q1. Is CAGR better than average return?
Yes. CAGR considers compounding and gives a true picture of consistent growth over time, unlike simple average returns which can be misleading.
Q2. Can I use this for SIP investments?
No, for SIPs use our SIP Calculator. CAGR is best for lump sum investments or when you know the initial and final values.
Q3. What is a good CAGR?
It depends on the investment. Generally, 10-15% CAGR is considered excellent for mutual funds or stocks over 5+ years.
Q4. Can I use this for business revenue growth?
Yes, CAGR is widely used by businesses to measure consistent annual revenue growth or profit over multiple years.
Q5. Does CAGR account for inflation?
No. CAGR is a nominal return. To calculate inflation-adjusted (real) returns, subtract average inflation from CAGR.
Ideal for Beginner and Intermediate Investors
If you're new to investing, understanding returns can be overwhelming. Our CAGR calculator simplifies that. It helps you assess how your money has grown and aids in making smarter investment decisions. Intermediate investors can use it to benchmark different assets and optimize their portfolios.
Grow Smarter, Invest Better
Use our free CAGR Calculator for India to evaluate your investments and plan your financial future today.
Try the CAGR Calculator Now