CAGR Calculator
Calculate the compounded annual growth rate of any investment.
Results
Initial value
₹1.00 L
Final value
₹2.00 L
Total return
100.00%
Absolute gain
₹1.00 L
CAGR
14.87%
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What is CAGR and why does it matter?
CAGR, or Compounded Annual Growth Rate, is the rate at which an investment would have grown if it grew at a steady rate each year. It smooths out volatility and gives you a single, comparable number to evaluate investment performance across different time periods and asset classes.
In India, CAGR is widely used to compare mutual fund returns, stock performance, business revenue growth, and real estate appreciation. For example, if a mutual fund turned ₹1 lakh into ₹2 lakh in 5 years, the CAGR is approximately 14.87% — which is more meaningful than saying "the fund doubled" because it lets you compare with other investments over different periods.
The CAGR formula is: CAGR = (Final Value / Initial Value)^(1 / Years) − 1. Keep in mind that CAGR assumes steady growth and does not reflect the actual year-by-year fluctuations your investment experienced. It is best used as a benchmark comparison tool, not as a prediction of future returns.