CAGR Calculator: Measure Your True Investment Growth Rate
Why Absolute Returns Lie
Your stock doubled in 7 years? That’s not an impressive "100% return" — it’s only 10.4% CAGR. A mutual fund that gave 150% in 5 years sounds better than one that gave 200% in 8 years, but their CAGRs are 20.1% and 14.7% respectively. CAGR (Compound Annual Growth Rate) normalises returns to an annual basis, making investments with different time periods truly comparable.
The CAGR Formula
CAGR = (End Value / Start Value)^(1/Years) – 1
Quick Examples
| Investment | Start | End | Years | Absolute Return | CAGR |
|---|---|---|---|---|---|
| Stock A | ₹1L | ₹3L | 5 | 200% | 24.6% |
| Real estate | ₹40L | ₹80L | 10 | 100% | 7.2% |
| PPF | ₹5L | ₹10.6L | 10 | 112% | 7.8% |
| Gold | ₹2L | ₹5.5L | 8 | 175% | 13.5% |
CAGR also helps you set realistic expectations. The Nifty 50 has delivered roughly 12–13% CAGR over 20+ year periods. Any equity fund claiming significantly higher than that consistently deserves scrutiny.
Use the CAGR calculator to measure growth on any investment, or compare different investments side by side.