CAGR Calculator

Use this CAGR Calculator to calculate the Compound Annual Growth Rate of your investment over a selected period. It helps you understand the annualized return from a lumpsum investment, mutual fund, stock, portfolio, fixed deposit, or any other asset where you know the initial value and final value.

CAGR is useful because it smoothens year-to-year volatility and shows the average annual growth rate of your investment. Enter your invested amount, investment date, maturity date, and final value to estimate the annualized return.

Invested Amount ₹0
Final Value ₹0
CAGR 0%
Investment Period 0 years

How does a CAGR Calculator help?

A CAGR calculator helps you compare investments with different holding periods by converting total growth into an annualized return. This is especially useful for comparing mutual funds, stocks, PMS strategies, fixed deposits, gold, real estate, and portfolio performance over time.

CAGR Calculator FAQs

What is CAGR?
CAGR stands for Compound Annual Growth Rate. It represents the annualized rate at which an investment grows over a period, assuming the investment compounds at a steady rate.
How is CAGR calculated?
CAGR is calculated using the formula: Final Value divided by Initial Investment, raised to the power of one divided by the number of years, minus one.
When should I use a CAGR Calculator?
Use a CAGR Calculator when you want to calculate annualized returns for a lumpsum investment over a fixed period, such as mutual funds, stocks, gold, real estate, or portfolio value.
Is CAGR suitable for SIP returns?
CAGR is best suited for one-time investments. For SIPs or multiple cash flows, XIRR is more appropriate because it considers the timing and amount of each transaction.
What is the difference between CAGR and absolute return?
Absolute return shows total percentage gain or loss, while CAGR shows the annualized growth rate. CAGR is usually better for comparing investments held for different time periods.
Can CAGR be negative?
Yes. If the final value of your investment is lower than the initial investment, CAGR will be negative, indicating annualized loss over the selected period.
What is a good CAGR for mutual funds?
A good CAGR depends on the asset class, risk level, category, and market cycle. Equity mutual funds are usually evaluated over longer periods such as five years or more.
Does CAGR show investment risk?
No. CAGR only shows annualized return. It does not show volatility, drawdowns, risk-adjusted return, or consistency of performance.
Can CAGR be used for comparing mutual funds?
Yes. CAGR can help compare historical returns of mutual funds, but it should be reviewed along with risk, portfolio quality, expense ratio, fund manager track record, and investment objective.
Why does CAGR smoothen returns?
CAGR assumes steady annual compounding between the starting and ending value. It does not show the actual year-by-year ups and downs of the investment.
Is CAGR the same as annual return?
Not always. Annual return refers to the return in a specific year, while CAGR is the average annualized return over the entire investment period.
Can I use CAGR for goal planning?
Yes. CAGR can help estimate the return required to grow today's investment into a future target amount, but goal planning should also consider inflation, risk, asset allocation, and time horizon.

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