CAGR Calculator
Calculate the compound annual growth rate (CAGR) of any investment from start to end values. Compare mutual funds, stocks and business growth at a glance.
CAGR
12.01%
Per year over 5 years
Total growth
76.32%
₹76,319 gained
CAGR smooths out yearly ups and downs into one average annual growth rate. A mutual fund that rose from ₹1,00,000 to ₹1,76,319 in 5 years grew at 12.01% per year.
Last updated: January 2026
How this calculator is verified
Checked by True Calculator automated test suite on
- Formula verified against a published worked example in the automated test suite
- Edge cases (zero, negative, boundary and unit-mismatch inputs) covered by unit tests
The full verification method is on our how we verify page. Found an error? Tell us and we will re-check it.
When to Use This Calculator
CAGR is the standard yardstick for judging any lump-sum investment in India — equity mutual funds, index funds, stocks, gold and even business revenue growth. When a fund factsheet claims a 5-year return, it is quoting CAGR, so this calculator lets you check the number against your own purchase and redemption values. It is also handy before investing: if you need ₹2,00,000 from ₹1,00,000 in 6 years, the required CAGR is about 12.25%, which tells you whether an FD, a debt fund or equity is realistically needed. Financial advisors, stock analysts and students preparing for finance exams all reach for CAGR when they want one comparable number across investments of different tenures, because it neutralises the time factor that simple returns ignore.
How to Use This Calculator
- Step 1: Enter the starting value of the investment — the amount you put in at the beginning.
- Step 2: Enter the final value today or at maturity, including any reinvested gains.
- Step 3: Enter the number of years the money stayed invested.
- Step 4: Read the CAGR in the result panel, along with the total growth percentage over the full period.
Worked Example
A Mumbai investor bought a mutual fund for ₹1,00,000 and held it for 5 years, and the statement now shows ₹1,76,319. Entering 100000, 176319 and 5 returns a CAGR of 12.01% per year, even though the total gain across the period is 76.32%. Because CAGR compounds yearly, it is the rate at which ₹1,00,000 would have grown to ₹1,76,319 if it had risen smoothly every year instead of in volatile bursts.
Tips and Common Mistakes
- •Tip 1: Compare funds only over identical periods — a 3-year CAGR and a 7-year CAGR are not directly comparable.
- •Tip 2: Use the final value after expenses and exit load to see the return you actually received.
- •Tip 3: For SIP investments, use XIRR instead, since CAGR assumes a single lump sum held for the whole period.
- ✗Mistake 1: Averaging yearly returns instead of using the compound formula — simple averages overstate growth when returns swing.
- ✗Mistake 2: Entering the period in months and reading the result as an annual rate; keep years in the field.
Frequently Asked Questions
What is CAGR and why is it used in India?
CAGR is the compound annual growth rate that smooths yearly ups and downs into one average rate. Indian mutual fund factsheets, AMFI reports and financial advisors quote it so investors can compare funds of different tenures on the same scale.
How is CAGR different from simple annual return?
Simple return divides total gain by the invested amount, ignoring time. CAGR accounts for compounding over the exact period, so a ₹1,00,000 investment that becomes ₹1,76,319 in 5 years shows a 12.01% CAGR even though the total gain is 76.32%.
Can CAGR be negative?
Yes. If an investment's value falls over the period, the CAGR is negative — for example, ₹1,00,000 dropping to ₹50,000 in 3 years is a −20.63% CAGR. A negative CAGR still tells you the average annual loss, which is useful for comparing poor-performing assets.
Does CAGR work for SIP investments?
Not directly. CAGR assumes a single lump-sum investment held for the full period. For SIPs with monthly instalments and partial withdrawals, use the XIRR calculator instead, which accounts for each cash flow's date.
What does a good CAGR look like for mutual funds?
There is no fixed benchmark, but Indian investors often compare fund returns against the Nifty 50 or Sensex returns over the same period. Long-term equity funds have historically delivered high-teens CAGRs over 10-year windows, but past performance never guarantees future returns.
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