CAGR Calculator
Calculate the Compound Annual Growth Rate of any investment over a period.
CAGR smooths out volatility — it shows the "steady" growth rate needed to go from initial to final value.
CAGR Calculator
CAGR (Compound Annual Growth Rate) calculates the single smoothed annual rate at which an investment grew from its starting value to its ending value over a period, even though real returns fluctuate year to year.
CAGR = ((Final Value / Initial Value)^(1 / years) − 1) × 100
Input: ₹1,00,000 grew to ₹2,50,000 over 7 years
Result: CAGR ≈ 14.03% per year
Is CAGR the same as the average annual return?
No — a simple average of yearly returns can overstate real growth because it ignores compounding and volatility drag. CAGR reflects the actual smoothed growth rate.
What's a good CAGR for equity investments in India?
Nifty 50's long-term CAGR has historically been roughly 11-14%, though this varies by period — CAGR is a description of the past, not a forecast.
CAGR Calculator: how it works
CAGR is the constant annual rate that would take an investment from its starting value to its ending value over the period, smoothing out year-to-year variation.
Formula
CAGR = (Ending Value / Beginning Value)^(1/n) − 1, where n is the number of years.