CAGR Calculator
Calculate CAGR of any investment. Find annualized return from start value, end value and years. Also reverse CAGR — target value from CAGR and tenure. Used for mutual funds, stocks, business.
CAGR Calculator — Compound Annual Growth Rate
Results update instantly
Enter initial investment value (start value)
Expected CAGR — use for forward calculation (what will my money grow to?)
Estimates based on constant rate assumption. Actual returns may vary.
| Year | Invested | Returns | Total Value |
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Nifty 50 CAGR over 20 years (2004-2024) was approximately 14.5%. Sensex CAGR since 1980 = 16.4%. Individual stocks can vary wildly — Bajaj Finance 10-yr CAGR = 32%, whereas many PSU stocks gave negative CAGR. Always evaluate investments on CAGR basis, never absolute returns.
What is a CAGR Calculator?
A CAGR calculator computes the Compound Annual Growth Rate of an investment — the single most important metric for comparing investment performance across different time periods and amounts. Every mutual fund fact sheet, stock analysis, and investment review uses CAGR as the standard return metric.
CAGR formula
Reverse: Final Value = Initial Value x (1 + CAGR)^n
n = number of years
Example: Rs 5L grew to Rs 14.2L in 10 years: CAGR = (14.2/5)^(0.1) - 1 = 11.0%
Why CAGR is the right metric — not absolute return
A fixed deposit that doubled your money in 10 years returned 7.2% CAGR. A stock that doubled in 2 years returned 41.4% CAGR. Without CAGR, these look identical ("100% return"). With CAGR, the stock clearly outperformed. Always demand CAGR numbers in time-specific format (1-year, 3-year, 5-year, 10-year, since inception) from any financial product you're evaluating.
CAGR limitations — what it doesn't show
CAGR shows the smoothed annualized return but hides volatility. Two investments can have identical 10-year CAGR but wildly different journeys: one may have been steady, another may have crashed 60% and recovered. For complete evaluation, look at CAGR alongside rolling returns and Sharpe ratio.
ThriftRupee tips on CAGR
Tip 1: Use rolling CAGR, not point-to-point. Point-to-point CAGR (from start date to end date) is highly sensitive to the chosen dates. A fund that crashed right before your measurement end date looks terrible even if it performed well across most periods. Rolling 3-year or 5-year CAGR gives a more robust picture.
Tip 2: Compare CAGR to inflation and index. A 10% CAGR fund that underperforms the Nifty 50 (12%) with more volatility is not a good fund. Always benchmark CAGR against (1) inflation, (2) risk-free rate, and (3) appropriate index benchmark.
Tip 3: XIRR for SIPs, CAGR for lumpsums. CAGR applies to single lumpsum investments. For monthly SIPs with irregular amounts, XIRR (Extended Internal Rate of Return) is the correct metric. Most mutual fund portfolio trackers show XIRR for SIP portfolios.