CAGR Calculator
Find the annualized growth rate of any investment between two points in time.
CAGR Formula
CAGR smoothens volatile returns into a single annualized figure. It's the standard way to compare performance across different asset classes and time periods.
Frequently Asked Questions
What is CAGR?
Compound Annual Growth Rate — the constant annual rate at which an investment would need to grow to go from its initial value to final value over a given period.
CAGR vs absolute return?
Absolute return is total % gain. CAGR annualizes it. ₹1 lakh growing to ₹2 lakh in 5 years is 100% absolute return but 14.87% CAGR.
Is CAGR the same as IRR?
Similar concept, but CAGR is simpler — it assumes only two cash flows (start and end). IRR handles multiple intermediate cash flows (like SIPs).
What is a good CAGR?
Depends on asset class. Equity index CAGR in India has been ~12% over 20 years. Real estate ~7–8%. Debt funds ~7%. Benchmark relative to the asset type.