Finance tool
CAGR Calculator
Calculate the compound annual growth rate of an investment.
Enter investment values
How to Use the CAGR Calculator
Enter your initial investment amount, final value, and the number of years. The CAGR calculator instantly shows your compound annual growth rate. You can use this to measure returns on mutual funds, stocks, fixed deposits, or any investment where you know the start and end values.
Why CAGR Matters for Investors
CAGR smooths out annual return fluctuations and gives you a single annualized growth rate. Unlike absolute returns, CAGR accounts for the time value of money. For example, if your investment grew from Rs 1,00,000 to Rs 2,00,000 in 5 years, the absolute return is 100% but the CAGR is approximately 14.9%. This makes CAGR the standard metric for comparing different investment options in India.
Frequently asked questions
What does CAGR show?
It shows the constant annual rate that would turn a starting value into an ending value over a period.
Does CAGR show volatility?
No. It smooths the journey and does not show interim gains or losses.
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