CAGR (in percentage %)
CAGR Calculator – Calculate Your Investment Growth Rate Online
Understanding how fast your investment grows every year is crucial for long-term wealth creation. Our free CAGR calculator helps you calculate the Compound Annual Growth Rate of stocks, mutual funds, SIP returns, and any other investment in seconds.
Whether you are comparing mutual fund performance, analysing stock returns, or tracking portfolio growth, this tool gives you a clear picture of your real annual returns.
📌 What is CAGR?
CAGR (Compound Annual Growth Rate) is the annual growth rate of an investment over a specific period of time, assuming the profits are reinvested every year.
It helps investors:
- Compare different investments
- Measure long-term performance
- Analyse mutual fund & stock returns
- Make better financial decisions
Unlike absolute returns, CAGR shows the real yearly growth rate.
📌 CAGR Formula
The formula used to calculate CAGR is:
CAGR = (Ending Value / Beginning Value) ^ (1 / Number of Years) – 1
This formula smooths out market volatility and gives the actual annual growth rate.
📌How to Use the CAGR Calculator?
Using this calculator is very simple:
Step 1:
Enter the beginning value of your investment
Step 2:
Enter the ending value
Step 3:
Enter the number of years
The tool will instantly show your CAGR percentage.
📌Example of CAGR Calculation
Let’s assume:
- Beginning investment = ₹50,000
- Ending value = ₹1,20,000
- Time period = 5 years
Your CAGR will be around 19.15% per year.
This means your money grew at 19.15% annually.
📌Why CAGR is Important for Investors?
CAGR helps you:
✔ Compare mutual funds
✔ Analyse stock performance
✔ Track portfolio growth
✔ Plan long-term investments
✔ Choose better Demat accounts
If you are investing for wealth creation, CAGR is one of the most important metrics.
📌 CAGR vs Absolute Returns
| CAGR | Absolute Returns |
|---|---|
| Shows yearly growth | Shows total growth |
| Best for long term | Best for short term |
| Time adjusted | Not time adjusted |
For serious investors, CAGR is more useful.
📌 Where CAGR is Used?
You can use CAGR to calculate returns of:
- Mutual Funds
- Stocks
- SIP investments
- Real estate
- Gold investments
- Portfolio performance
📌 Limitations of CAGR
CAGR assumes:
- Growth is constant every year
- Profits are reinvested
In reality markets are volatile, but CAGR still gives the best long-term comparison.
📌CAGR for Mutual Funds & Stocks in India
While selecting an investment, always compare:
- 3-year CAGR
- 5-year CAGR
- 10-year CAGR
This helps you identify consistent performers.
If you are planning to start investing, check our:
👉 Best Demat Account for Beginners in India
👉 Best Demat Account for Long-Term Investors
📌 Frequently Asked Questions (FAQ)
What is a good CAGR return?
In India, a CAGR of 12% – 15% is considered good for long-term equity investments.
Is CAGR better than absolute return?
Yes, for long-term investment comparison.
Can CAGR be negative?
Yes, if your investment loses value.
What is the difference between XIRR and CAGR?
CAGR is for lump sum investment, XIRR is for multiple cash flows like SIP.
📌 Final Thoughts
CAGR is one of the most powerful tools for evaluating your investment performance. Before investing in any mutual fund, stock, or portfolio, always check its CAGR to make smart financial decisions.
Use this free CAGR calculator to plan your wealth journey and choose the best investments for long-term growth.