Calculate Compound Annual Growth Rate of investments
CAGR Calculator computes the Compound Annual Growth Rate of an investment — the smoothed annual rate at which it grew from its starting value to its ending value over a period. Enter the initial value, final value, and the number of years (or months) to get the CAGR percentage. CAGR is the standard way to compare investment performance because it removes the noise of year-to-year volatility and expresses growth as one clean annual figure — useful for comparing mutual funds, stocks, business revenue, or any value over time.
CAGR is calculated with the formula CAGR = (Final Value ÷ Initial Value)^(1 ÷ years) − 1, expressed as a percentage. It answers: "what constant annual rate would turn the initial value into the final value over this period?" Because it compounds, CAGR differs from a simple average of yearly returns and gives a truer picture of long-term growth. For monthly inputs the period is converted to years. All computation runs locally in your browser.
CAGR (Compound Annual Growth Rate) is the consistent annual growth rate that would take an investment from its initial to final value over a given period. Formula: CAGR = (Final Value ÷ Initial Value)^(1÷Years) − 1. Example: ₹1 lakh growing to ₹2 lakh in 6 years has a CAGR of (2÷1)^(1/6)−1 = 12.25% per year.
For context: Fixed Deposits earn 6.5–7.5% CAGR; Nifty 50 index has averaged 12–14% CAGR over long periods; quality mid-cap mutual funds aim for 14–18%; gold has averaged 8–10% CAGR over 10 years in India. Inflation (CPI) runs at 4–6% CAGR — any investment returning less is losing real value.