CAGR Calculator

Introduction to the CAGR Calculator

The CAGR Calculator finds the compound annual growth rate of an investment, the steady yearly rate at which the starting value would have grown to reach the ending value over a fixed time. It uses the formula CAGR equals (Final Value / Initial Value) raised to (1 / years), minus 1, expressed as a percentage.

Indian investors use this for comparing mutual fund schemes, judging stock returns vs Nifty, benchmarking FDs against PPF and NPS, tracking gold and real estate growth, and reviewing SIP performance over 3, 5, or 10 years. Related terms include annualised return, compounded yearly growth, smoothed return, and effective rate.

You enter initial investment value, final value, and the number of years held. The calculator returns the CAGR as a percentage, absolute growth in rupees, the year-by-year breakdown if compounded annually, and a comparison ladder against FD, PPF, and Nifty 50 returns.

Who Should Use This CAGR Calculator

• Mutual fund investors comparing the 5-year CAGR of Axis Bluechip vs Mirae Asset Large Cap
• • Stock investors tracking the CAGR of Reliance, TCS, or HDFC Bank over 10 years
• • Goal planners checking whether their PPF account is on track for retirement corpus
• • Real estate buyers calculating the CAGR of a Pune or Bengaluru flat over the holding period
• • Gold and silver investors comparing sovereign gold bonds vs physical gold returns

Tips for CAGR-Based Investing

Smart CAGR-Based Investing Tips

• A CAGR of 12 percent over 10 years doubles your money, the rule of 72 says 72 / 12 = 6 years to double
• • Equity mutual fund 10-year CAGR is typically 10-14 percent, FD CAGR is 6-7 percent post-tax
• • Always compare CAGR over the same tenure, a 3-year CAGR is not directly comparable to a 7-year one
• • A 5-year CAGR above 18 percent in mid-cap funds is exceptional, do not expect that to repeat
• • For tax planning, equity CAGR returns above Rs 1 lakh attract 10 percent LTCG after 1 year of holding

Formula Explanation

Core CAGR Formula

CAGR = ((Final Value / Initial Value) ^ (1 / Number of Years)) - 1

Where:

• Initial Value = amount invested at start
• • Final Value = current or sold value of the investment
• • Number of Years = total holding period in years (decimals allowed)

Example: Rs 1,00,000 invested in a mutual fund grew to Rs 2,15,000 in 7 years. CAGR = ((2,15,000 / 1,00,000) ^ (1/7)) - 1 = (2.15 ^ 0.1429) - 1 = 1.1156 - 1 = 0.1156 or 11.56 percent.

CAGR Quick Reference Table

Initial (Rs)	Final (Rs)	Years	CAGR (percent)
1,00,000	2,00,000	7	10.41
5,00,000	12,00,000	10	9.14
1,00,000	3,00,000	10	11.61
2,00,000	10,00,000	15	11.33

Real-World Example

Example: Ishita's Mutual Fund Comparison

Meet Ishita, a 33-year-old IT consultant from Hyderabad. She invested Rs 2,00,000 in a flexi-cap mutual fund in 2018, and the value today is Rs 4,50,000. She also has Rs 2,00,000 in a 5-year FD that matured at Rs 2,76,000.

Ishita wants to compare both options on a like-for-like basis using CAGR before deciding where to park her next bonus of Rs 3 lakh. She has 7 years total invested in the flexi-cap fund and 5 years in the FD.

Step 1: Ishita enters Rs 2,00,000 initial, Rs 4,50,000 final, 7 years for the fund

Step 2: She does a second run with Rs 2,00,000, Rs 2,76,000, 5 years for the FD

Step 3: She compares the two CAGR numbers

Result: The flexi-cap fund delivered a CAGR of 12.27 percent, the FD just 6.65 percent. The fund returns are nearly double after tax even with 10 percent LTCG, so Ishita parks her bonus in a similar flexi-cap fund for long-term growth.

Frequently Asked Questions About CAGR

This FAQ section answers the most common questions about CAGR. Tap any question below for a clear, example-based answer.