CAGR Calculator
Calculate the Compound Annual Growth Rate of your investments to measure true annualised performance.
₹
₹1000₹10000000
₹
₹1000₹100000000
yrs
1 yrs30 yrs
CAGR
24.57%
Total Returns
200.00%
Absolute Profit
₹2,00,000
Investment Growth
Initial Value₹1,00,000
Final Value₹3,00,000
Your investment grew at 24.57% per year
CAGR Formula
The CAGR formula is:
CAGR = (Final Value / Initial Value)1/n - 1
Where n is the number of years. An investment of ₹1,00,000 growing to ₹3,00,000 over 5 years gives a CAGR of 24.57%.
Frequently Asked Questions
What is CAGR?
CAGR (Compound Annual Growth Rate) measures the mean annual growth rate of an investment over a specified period longer than one year. It smooths out volatility and gives you a single annual rate.
How is CAGR different from absolute returns?
Absolute return shows total percentage gain. CAGR annualises this return, making it comparable across investments with different time periods. A 100% absolute return over 10 years is only ~7.2% CAGR.
What is a good CAGR for equity investments in India?
The Nifty 50 has delivered approximately 11-13% CAGR over 20+ years. Above 15% for equity is considered excellent. Large-cap funds target 10-14% CAGR.
Can CAGR be negative?
Yes, CAGR can be negative if the final value is less than the initial value. For example, Rs 1,00,000 becoming Rs 80,000 in 2 years gives a CAGR of approximately -10.56%.
What are the limitations of CAGR?
CAGR does not account for risk or volatility. It assumes constant growth. It does not consider additional investments or withdrawals during the period.