CAGR Calculator: Measure Your Investment Growth
Calculate the Compound Annual Growth Rate (CAGR) of your investments. Perfect for financial planning in India and worldwide.
Your CAGR Results
CAGR (%)
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Total Growth (%)
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Investment Growth
Investment Tips
Compare CAGR to assess investment performance.
Use CAGR for long-term investment planning.
Consult a financial advisor for personalized strategies.
More Tools to Explore:
CAGR Calculator - Analyze Your Investment Growth Over Time
Why CAGR Matters for Indian Investors
In India, we often talk about "Absolute Returns" (e.g., my house price doubled), but without the context of time, that number is meaningless. CAGR provides that context. Here’s where it’s most useful:
Mutual Fund Performance
Don't just look at last year's returns. Check the 3-year or 5-year CAGR to see if the fund consistently beats its benchmark.
Real Estate Returns
If you bought a flat for ₹40 Lakhs and sold it for ₹80 Lakhs after 10 years, your CAGR is about 7.2%. Is that better than a fixed deposit? CAGR helps you decide.
Gold / Silver Growth
India loves gold. Use this tool to see the actual annualized growth of your gold ornaments over the last decade.
CAGR vs. Absolute Return: A Practical Example
Let's say you invested ₹1 Lakh in two different schemes:
| Scheme | Final Value | Time | Absolute Return | CAGR |
|---|---|---|---|---|
| Stock Market | ₹2 Lakhs | 5 Years | 100% | 14.87% |
| Real Estate | ₹2 Lakhs | 10 Years | 100% | 7.18% |
Notice how even though both doubled your money, the Stock Market scheme was much more efficient because it did it in half the time!
Tips for Accurate CAGR Analysis
To get the most out of your financial analysis, keep these points in mind:
- Be Realistic with Time: Always use the exact number of years and months. Small changes in the time period can significantly alter the CAGR.
- Account for Inflation: If your CAGR is 8% but inflation (CPI) in India is 6%, your real "purchasing power" growth is only 2%.
- Post-Tax CAGR: Remember that capital gains tax (LTCG/STCG) will reduce your final realization. Calculate CAGR on the post-tax amount for the real picture.
- Volatility: High CAGR doesn't always mean low risk. A stock might go up 50% one year and down 20% the next, but still show a good 3-year CAGR.
Frequently Asked Questions - Investment Growth
Technically, CAGR is for point-to-point investments (Lumpsum). For SIPs, where you invest different amounts at different times, XIRR (Extended Internal Rate of Return) is the correct metric. However, CAGR can still give a rough idea of the fund's overall performance.
Historically, Nifty 50 has given a CAGR of around 12-14% over long periods. Anything above 15% is considered excellent in the Indian context, while 8-10% is decent for low-risk portfolios.
Standard CAGR calculations only use the buy and sell prices. If you want a complete picture, you should add the total dividends received to your final value before calculating CAGR (this is known as Total Shareholder Return).
Average return can be misleading. If you lose 50% in year 1 and gain 50% in year 2, your average return is 0%, but your actual investment is down by 25%. CAGR correctly shows this as a negative growth rate.
For investment analysis, at least 3 to 5 years is recommended. Short-term CAGR (under 1 year) is very volatile and doesn't represent the true potential of an asset.
Your Guide to CAGR Calculation
What’s a CAGR Calculator?
This tool calculates the Compound Annual Growth Rate (CAGR), showing the annualized growth rate of an investment over a specified period. Ideal for investors in India and globally.
How CAGR Is Calculated
Formula used:
CAGR:
CAGR = [(Final Value ÷ Initial Value)^(1 ÷ Years) - 1] × 100
Total Growth:
Total Growth = [(Final Value ÷ Initial Value) - 1] × 100
Our calculator simplifies this for you!
Understanding Your Results
Your CAGR results include:
| Component | Description |
|---|---|
| CAGR (%) | Annualized growth rate (e.g., 8.45%). |
| Total Growth (%) | Overall growth over the period (e.g., 50%). |
Why Use a CAGR Calculator?
Enhance your investment decisions:
Measure Performance
Evaluate investment growth rates.
Compare Investments
Assess different opportunities.
Plan Finances
Set long-term financial goals.
Key Considerations for CAGR
Ensure accurate interpretations:
CAGR assumes steady growth, smoothing out volatility. It’s a theoretical rate, not actual annual returns.
Yes! The calculator uses ₹ (India), but results are percentage-based and apply to any currency.
No, CAGR doesn’t reflect investment risk or volatility. Consider other metrics like standard deviation for risk analysis.
Frequently Asked Questions About CAGR
Got questions about calculating Compound Annual Growth Rate? Here are answers to guide your investment decisions:
CAGR is the annualized growth rate of an investment. For example, ₹1,00,000 growing to ₹1,50,000 in 5 years has a CAGR of ~8.45%. It’s useful for comparing investments.
CAGR shows annual growth rate, while total growth is the overall percentage increase. E.g., ₹1,00,000 to ₹1,50,000 is 50% total growth, but CAGR annualizes it.
Yes! It’s tailored for Indian investors (₹) and common investments like mutual funds or stocks. It’s also globally applicable.
Yes, if the final value is less than the initial value (e.g., ₹1,00,000 to ₹80,000), CAGR will be negative, indicating a loss.
Yes! All calculations are done locally in your browser, and no data is stored or shared.