Enter Investment Details
Enter investment details
Fill in the beginning value, ending value, and time period to calculate CAGR.
~12-14% CAGR (10-yr avg)
~10-12% CAGR (10-yr avg)
~6-7% (pre-tax)
~7.1% (tax-free)
~8-10% (varies by city)
~5-6% (CPI avg)
💡 Understanding CAGR
CAGR vs Absolute Return
Absolute return tells you total profit (e.g., "50% gain"). CAGR tells you the annualized rate — making it easy to compare investments of different durations. A 50% gain over 3 years = 14.47% CAGR.
When to Use CAGR
Use CAGR to compare mutual fund returns, stock performance, real estate appreciation, or any investment over different time periods. It smooths out volatility to show the "steady" growth rate.
Benchmark Comparisons
Nifty 50 CAGR: ~12-14% (10-year). FD: ~6-7%. Gold: ~8-10%. PPF: ~7.1%. Compare your investment's CAGR against these benchmarks to evaluate performance.
📋 CAGR Limitations
CAGR assumes smooth growth, hiding volatility. A stock might swing wildly yet show a decent CAGR. Always look at rolling returns and drawdowns too.
CAGR doesn't account for intermediate cash flows (SIP, dividends). For SIP investments, use XIRR instead. Try our SIP Calculator for that.
📌 Next Steps
Compare your investment's CAGR against what a SIP would have generated. Use our SIP Calculator for systematic investment projections.
Explore our FD Calculator for fixed-return alternatives, or Retirement Calculator for long-term planning.
⚠️ Calculator Disclaimer: CAGR is a mathematical measure of past performance and does NOT predict future returns. Past performance is not indicative of future results. Investments are subject to market risks. This tool is for educational purposes only — not an investment recommendation. Consult a SEBI-registered advisor.
💡 How CAGR Works
Smoothed Growth Rate
CAGR shows the average annual growth rate as if the investment grew steadily — it smooths out volatility.
Compare Investments
CAGR is ideal for comparing investments with different time periods and volatility patterns on equal footing.
Not Same as Returns
CAGR ignores year-to-year ups and downs. High CAGR can come with high volatility — always consider risk alongside returns.
📌 What To Do Next
Now you know your CAGR — use it to project future SIP growth or compare against fixed-return instruments like FD and PPF. Always consult a qualified financial advisor before making any financial decisions.
Project SIP Growth →