CAGR Calculator
Calculate Compound Annual Growth Rate (CAGR) of any investment. Enter initial value, final value, and years.
CAGR
+20.11%
Absolute Return
₹1.50 L
Return %
+150.00%
Investment growth at 20.11% CAGR
Year-wise Growth at 20.11% CAGR
| Year | Value | Growth |
|---|---|---|
| Start | ₹1.00 L | — |
| Year 1 | ₹1.20 L | +₹20,112 |
| Year 2 | ₹1.44 L | +₹24,158 |
| Year 3 | ₹1.73 L | +₹29,016 |
| Year 4 | ₹2.08 L | +₹34,852 |
About the CAGR Calculator
CAGR (Compound Annual Growth Rate) is the annualized rate at which an investment grows from start to end, assuming profits are reinvested. It is the standard metric used to compare investments of different durations and sizes. A ₹1L investment that became ₹2.5L in 5 years sounds like a 150% return, but the CAGR is 20.1% - a number that immediately tells you how it compares to a SIP, FD, or the Nifty 50.
CAGR Formula
CAGR = (Final Value / Initial Value)^(1 / Years) - 1
Final Value = current or ending value of investment · Initial Value = starting investment value · Years = holding period in years (use decimal for partial years) · Expressed as percentage: CAGR × 100
Worked Example
Real estate bought in 2015 for ₹45 lakh, worth ₹85 lakh in 2024
CAGR = (85/45)^(1/9) - 1 ≈ 7.3% · Compare: Nifty 50 CAGR same period ≈ 14% · Real estate underperformed equity significantly
Tips & Insights
- 1
Nifty 50 has delivered roughly 12-14% CAGR over any 10-year rolling period since 2000 - use this as your equity benchmark.
- 2
CAGR does not show volatility - an investment may have fallen 50% midway but still show a good CAGR if it recovered.
- 3
For irregular cash flows (SIP, loans), use XIRR instead of CAGR for accurate return calculation.
- 4
Gold's CAGR in India over the last 20 years is approximately 11-12%, comparable to equity but with less volatility.
- 5
Inflation at 6% means any investment with CAGR below 6% is losing real value - FD at 6.5% gives only 0.5% real return.
Why this matters for you
Without CAGR, investment comparisons are meaningless. A friend who doubled their money in 3 years (CAGR 26%) is doing far better than another who tripled their money in 15 years (CAGR 7.6%). Nifty 50's CAGR since inception is around 12%, which is the benchmark that any financial product must beat to be worth the added complexity or risk.