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Calculate the Compound Annual Growth Rate of any investment or project future value at a desired growth rate. Compare against market benchmarks.
* CAGR is a mathematical measure and does not account for volatility or interim fluctuations. Projected values assume constant compounding. For estimation purposes only.
CAGR (Compound Annual Growth Rate) measures the annual growth rate of an investment over a period, smoothing out year-to-year volatility. It is calculated as: CAGR = (Final Value / Initial Value)^(1/n) − 1, where n is the number of years.
Average annual return simply averages yearly percentage gains/losses, which can be misleading with volatile returns. CAGR accounts for compounding and gives a smoothed, more accurate picture of actual growth over the full period — it shows what your investment effectively grew at, year over year.
A CAGR of 12–15% over 5–10 years is considered good for equity mutual funds in India, roughly matching long-term Nifty/Sensex performance. Debt funds typically deliver 6–8% CAGR. Always compare a fund's CAGR against its category benchmark.
Yes, if the final value of your investment is lower than the initial value, CAGR will be negative, indicating an overall loss over the period despite any interim ups and downs.
Yes, the CAGR calculator works for any investment type — stocks, mutual funds, real estate, or business revenue — as long as you have the initial value, final value, and number of years.
