CAGR Calculator — Compound Annual Growth Rate
Calculate annualised returns for stocks, mutual funds, and fixed deposits. Supports fractional years (e.g. 2.5) with a year-by-year breakdown.
| Period | Value | Gain / Loss | Return % |
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CAGR is a smoothed annualised return. Actual investment returns vary based on market conditions and are not guaranteed. Past returns do not guarantee future performance.
What is CAGR?
CAGR stands for Compound Annual Growth Rate. It measures the mean annual growth rate of an investment over a specified period longer than one year, assuming profits are reinvested at the end of each period. CAGR is the most widely used metric to compare the performance of stocks, mutual funds, and fixed deposits in India because it smooths out volatility and gives a single comparable number.
This compound annual growth rate calculator handles both positive and negative CAGR, supports fractional years (e.g. 2.5), and provides a complete year-by-year breakdown of your investment's projected value.
How to Use This CAGR Calculator
Enter the initial value of your investment, the current or final value, and the number of years held. Click Calculate to get the CAGR percentage, absolute return percentage, total gain in rupees, and a year-by-year value table.
- Initial Value: The amount you originally invested (e.g. ₹1,00,000).
- Final Value: The current market value or the maturity value of your investment.
- Duration: Number of years held. You can enter decimals — for example, 2.5 means two and a half years.
CAGR Formula
Example Calculation
Initial investment: ₹1,00,000 | Final value: ₹2,50,000 | Duration: 6 years
CAGR = (2,50,000 ÷ 1,00,000) ^ (1 ÷ 6) − 1 = 16.47% per year
Absolute return = 150% | Total gain = ₹1,50,000
CAGR Benchmarks for Indian Investors
SEBI-registered mutual funds report returns using CAGR for periods over one year. The right benchmark depends on what you are measuring: a broad-market index for diversified equity, a debt benchmark for fixed-income products, or the actual quoted rate for fixed deposits.
- Broad-market equity: Compare with a relevant TRI benchmark for the same period
- Fixed Deposits (FD): Compare with the quoted contracted FD rate
- Small-cap or sector funds: Compare with the matching category benchmark, not a broad index alone
- Gold: Compare with a gold benchmark or your actual holding vehicle
Use CAGR mainly as a comparison tool. A raw CAGR number without a benchmark, fee context, and risk context can be misleading.
Frequently Asked Questions
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There is no universal good CAGR number. A strong CAGR depends on the asset class, the time period, and the risk taken to earn that return. Compare the number with an appropriate benchmark and your own required return rather than treating one fixed threshold as a rule.
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Absolute return tells you total percentage gain regardless of time. CAGR annualises that gain, making it comparable across different holding periods. For example, doubling your money in 2 years is 100% absolute return but 41.4% CAGR, while doubling in 10 years is the same 100% absolute return but only 7.2% CAGR. Always use CAGR when comparing investments held for different durations.
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Yes. If your final value is less than your initial investment, CAGR will be negative, indicating an annualised loss. For example, if ₹1,00,000 becomes ₹70,000 in 5 years, the CAGR is −6.84% per year. This calculator handles negative CAGR correctly and displays it clearly.
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AMFI guidelines require mutual funds to report returns as CAGR for periods over one year because it allows fair comparison between funds held for different durations. It also prevents misleading marketing using large cumulative return numbers over long holding periods.