CAGR Calculator
Find the Compound Annual Growth Rate between any two values โ investments, revenue, or any metric โ over any time period.
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How this calculator works
CAGR (Compound Annual Growth Rate) is the smoothed annualised return of an investment from start to end โ as if it grew at the exact same rate every year. It ignores year-to-year volatility and gives you a single representative number. Formula: CAGR = (Final Value รท Initial Value)^(1/Years) โ 1. It's different from absolute return, which is the total percentage gain without accounting for time.
CAGR = (Final Value รท Initial Value) ^ (1 รท Years) โ 1
Last updated: March 2026 ยท Rates and slabs updated for FY 2025-26
CAGR โ average return
Averaging annual returns overstates performance. CAGR accounts for compounding correctly โ it's always lower than or equal to the arithmetic average.
Benchmark against Nifty
Nifty 50 has delivered roughly 12โ13% CAGR over 20 years. If your mutual fund has a CAGR below Nifty, a passive index fund may serve you better.
Time is the lever
A 12% CAGR doubles your money in 6 years (Rule of 72). At 6%, it takes 12 years. Small CAGR differences become massive over decades.
Frequently Asked Questions
Averaging annual returns overstates performance. CAGR accounts for compounding correctly โ it's always lower than or equal to the arithmetic average.
Nifty 50 has delivered roughly 12โ13% CAGR over 20 years. If your mutual fund has a CAGR below Nifty, a passive index fund may serve you better.
A 12% CAGR doubles your money in 6 years (Rule of 72). At 6%, it takes 12 years. Small CAGR differences become massive over decades.