CAGR Calculator
Use our free CAGR Calculator to determine the compound annual growth rate of your mutual fund, SIP, or lumpsum investment. Whether you're tracking historical fund performance or projecting future returns, this tool gives you a clear picture of your annualized gains over time.
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Frequently Asked Questions
What is CAGR?
CAGR, or Compound Annual Growth Rate, is the average rate of return earned by an investment over a specific period, assuming the profits are reinvested each year. It smoothens out the volatility to show consistent annual growth.
How is CAGR calculated?
The formula for CAGR is:
CAGR = [(Final Value / Initial Investment) ^ (1 / Number of Years)] - 1.
This calculator does it instantly using your input for investment amount, dates, and maturity value.
Learn more in our blog on How XIRR Works.
When should I use a CAGR Calculator?
Use it to evaluate long-term investments like mutual funds, stocks, SIPs, or FDs. For forward-looking estimates, try our Goal Planning Tool.
Is CAGR better than absolute return?
CAGR reflects compounded growth per year, making it a more reliable metric over time than absolute return. See our comparison in SIP vs Lumpsum Returns.
Can I calculate CAGR for SIPs?
CAGR is suited for one-time investments. For SIPs, use our XIRR Calculator, which handles multiple cash flows better.
How does CAGR help in financial planning?
It helps estimate how much return you need to meet a goal. Pair it with our Investment Required Calculator to map your journey.
What is a good CAGR for mutual funds?
Typically, 10–15% CAGR over 5–10 years is considered strong for equity funds. Use our SIP & Lumpsum Calculator to explore growth scenarios.
Where can I compare fund CAGR values?
Visit our Mutual Fund Explorer to compare returns across 1Y, 3Y, 5Y, and since inception.
Where can I learn more about investing?
Check out our Wealth North Academy for beginner-to-pro courses on mutual funds, compounding, risk, and more. For curated articles and research, visit our Knowledge Center.
Additional Reads & Tools
Want Strong CAGR from Your Mutual Funds?
Use our powerful tools to explore mutual fund options that have delivered strong historical returns. Simulate and compare outcomes with our SIP & Lumpsum Calculator, XIRR Calculator, and Goal Planner — designed to help you make informed investment decisions.
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