CAGR Calculator
Calculate Compound Annual Growth Rate (CAGR) or project future value of any investment. Use CAGR to compare returns across mutual funds, stocks, real estate, and other asset classes on an apples-to-apples basis.
Educational Purpose Only: Results are illustrative estimates and not financial advice.
What is CAGR?
Compound Annual Growth Rate (CAGR) is the rate at which an investment would have grown if it had grown at a steady rate each year, compounding annually. It is the single most useful metric for comparing the performance of different investments over the same time period, because it smooths out year-to-year volatility and shows you the “effective” annual return.
The formula is: CAGR = (Final Value / Initial Value)^(1/Years) − 1. For example, if a mutual fund grew from ₹1,00,000 to ₹1,76,234 in 5 years, the CAGR is (1.76234)^0.2 − 1 = 12% per annum.
When to use CAGR
Use CAGR whenever you want to compare two investments with different starting points or time horizons. It is widely used to measure mutual fund NAV growth, stock price appreciation, revenue growth of companies, and real estate price appreciation. A CAGR of 12% over 10 years means your money doubles approximately every 6 years (using the Rule of 72).
This calculator is for educational and illustrative purposes only. CAGR is a simplified measure and does not account for taxes, dividends, or interim cash flows. Past returns do not guarantee future performance.