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Home›Finance›CAGR Calculator

CAGR Calculator

Compound Annual Growth Rate — investments, revenue, portfolio

Quick Answer — CAGR

The CAGR Calculator is a free online financial tool that helps you compound annual growth rate — investments, revenue, portfolio. Enter your values above for instant, accurate results — no signup required. All calculations run privately in your browser.

Standard Formula Updated 2026
₹
₹
years
5years
1years40years
Methodology
Free forever Data stays on your device Works offline (PWA) Verified formulas

Maintained by: Sagar Sahni, Calc Labz  |  Review: formula checks, worked examples, and periodic updates

Use with care: Finance and tax outputs are planning estimates only and should be checked against current rules.

Need a correction? Contact us with the calculator name and the issue you found.

Formula & Worked Example

The math behind the CAGR Calculator

Mathematical Formula

CAGR = \left(\frac{V_f}{V_i}\right)^{\frac{1}{n}} - 1
Where: - **CAGR** is the Compound Annual Growth Rate. - **Vf** is the Final Value. - **Vi** is the Initial Value. - **n** is the Number of Years. - CAGR smooths out volatility to show the constant rate that would have produced the same result.

Step-by-Step Worked Example

Investment grew from **₹1,00,000** to **₹2,50,000** in **5 years**: - CAGR = (2,50,000 / 1,00,000)^(1/5) - 1 - CAGR = (2.5)^0.2 - 1 = 1.2011 - 1 - **CAGR ≈ 20.11% per year**

Frequently Asked Questions

Common questions about the CAGR Calculator

What is a good CAGR for investments?
In the Indian context: Equity mutual funds: 12-15% CAGR (long-term), Index funds (Nifty 50): 12-13%, FDs: 6-7%, PPF: 7-8%, Gold: 8-10%, Real estate: 5-8%. A CAGR higher than inflation (6%) means real wealth creation.
How is CAGR different from average return?
CAGR shows the smoothed annual growth rate assuming steady growth. Average return is the arithmetic mean of yearly returns. Example: If an investment returns +50% in Year 1 and -50% in Year 2, average return is 0%, but CAGR is -13.4% (you actually lost money).
Can CAGR be used to compare different investments?
Yes. CAGR is the best metric for comparing investments over different time periods. It accounts for compounding and gives you the true annualized return. However, it does not capture volatility — two investments can have the same CAGR but very different risk profiles.
What is the CAGR of Nifty 50 over the last 20 years?
The Nifty 50 has delivered approximately 12-14% CAGR over 20-year periods historically. Including dividends (Total Return Index), it is closer to 13-15%. However, 5-year CAGRs can range from 2% to 25% depending on entry and exit timing.
Does CAGR account for additional investments?
No. CAGR only works for lump-sum investments with a single start and end value. For SIP or multiple cash flows, use XIRR (Extended Internal Rate of Return) instead. XIRR accounts for timing and size of each cash flow.

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What is the CAGR Calculator?

The CAGR Calculator computes the Compound Annual Growth Rate of your investments, revenue, or any value that grows over time. CAGR gives you the smoothed annual rate of return, making it easy to compare different investments. It is the most accurate way to evaluate long-term investment performance.

How to Use the CAGR Calculator

  1. Enter Initial Value: Enter your initial value in Indian Rupees (₹) in the input field. The calculator will validate your input automatically.
  2. Enter Final Value: Enter your final value in Indian Rupees (₹) in the input field. The calculator will validate your input automatically.
  3. Enter Number of Years: Enter your number of years (in years) in the input field. The calculator will validate your input automatically.
  4. View Your Results: The CAGR Calculator displays your results instantly in the output panel. You will see the primary result along with a detailed breakdown of secondary outputs. Scroll down for charts, interpretations, and expert advice.

Key Features

  • Instant CAGR calculations with real-time updates
  • No signup, no registration — 100% free forever
  • All calculations happen in your browser — zero data sent to servers
  • Works offline as a Progressive Web App (PWA)
  • Mobile-friendly responsive design
  • Verified financial formulas updated for 2026

Why Use Calc Labz CAGR Calculator?

The Calc Labz CAGR Calculator stands out because it combines accuracy with simplicity. Unlike other online calculators, we provide detailed breakdowns, step-by-step formulas, and actionable advice alongside your results. Our financial calculators are regularly updated to reflect current rates, rules, and standards for India (2026). Whether you are a student, professional, or just need a quick calculation — Calc Labz delivers reliable results instantly.

Key Terms & Glossary

Principal
The original amount of money borrowed or invested, before any interest is applied.
Interest Rate
The percentage charged on borrowed money or earned on invested money, usually expressed per annum.
Compound Interest
Interest calculated on both the initial principal and previously accumulated interest — "interest on interest."
Amortization
The process of spreading loan repayment into equal installments over a fixed period.
Maturity
The date on which a financial instrument (FD, bond, PPF) reaches its full term and the principal is returned.
CAGR
Compound Annual Growth Rate — the smoothed annual rate of return on an investment over a specified period.