Calculate Compound Annual Growth Rate of any investment, fund or business
Three modes: (1) Calculate CAGR from beginning and ending values, (2) Find future value with known CAGR, (3) Find how many years to reach a target.
For mutual funds: enter your invested amount and current value. For stocks: enter purchase price and current price. For business: enter revenue in Year 1 and current year.
Enter how many years the investment was held. For partial years, use decimals — e.g., 2.5 for two and a half years.
See the CAGR percentage, absolute return, and how it compares to benchmark returns like Nifty 50 (12-14% CAGR) and FD (7%).
CAGR Formula: CAGR = (Ending Value / Beginning Value)^(1/n) − 1
Where: n = number of years
Example: ₹1L grew to ₹3L in 10 years → CAGR = (3,00,000/1,00,000)^(1/10) − 1 = 11.61%
CAGR (Compound Annual Growth Rate) is the most accurate way to measure investment performance over time. Unlike simple average returns, CAGR accounts for compounding and gives you the true annualized return. It is the standard metric used to compare mutual funds, stocks, and business growth in India.
Over a 10-year horizon: Large-cap funds: 10-12% CAGR is good | Mid-cap funds: 13-16% | Small-cap: 15-20% (with higher risk) | Nifty 50 Index: ~12-14% | FD: 6.5-7.5%. Anything above 12% over 10+ years is considered strong performance in India.
CAGR assumes a single lump sum investment. XIRR (Extended Internal Rate of Return) is used for irregular cash flows like SIP investments. For SIP mutual funds, always use XIRR — not CAGR. Most AMC statements show XIRR for SIP investments.
Compare funds using the same time period (5-year or 10-year CAGR). A fund with 15% CAGR vs 12% CAGR over 10 years makes a significant difference: ₹1 lakh becomes ₹4.05 lakh at 15% vs ₹3.10 lakh at 12%. Always compare CAGR against the benchmark index CAGR for that category.
Yes, CAGR can be negative if the ending value is less than the beginning value, indicating a loss. For example, if ₹1 lakh fell to ₹80,000 in 3 years, CAGR = -7.03%. Negative CAGR often occurs with individual stocks or sector funds during downturns.