CAGR Calculator
Calculate Compound Annual Growth Rate for investments.
About CAGR Calculator
Designed for investors and business analysts, the CAGR Calculator opens instantly with no signup and nothing to install. Compute the compound annual growth rate of any investment by entering the beginning value, the ending value and the number of years, and the tool returns the CAGR along with the absolute return and a year-by-year breakdown. CAGR smooths out volatility into a single annual figure, which is why it is the standard way to compare a SIP, a property and a business investment over different periods. The formula of (ending divided by beginning) raised to 1 over years, minus 1, is shown so the result is verifiable, and the tool flags when the period is too short for a meaningful CAGR. It is equally useful for business revenue growth and portfolio review. The assumptions are tuned to the Indian market, from new-regime tax slabs to the interest rates actually offered by major banks and Post Office schemes. Typical moments to reach for it: comparing two mutual funds over five years, checking the CAGR of a property bought in 2015, or reviewing annual revenue growth of a business. The layout stays simple on purpose: no clutter, no dark patterns, just the answer you came for.
How to Use the CAGR Calculator
- Open the CAGR Calculator tool above — it loads instantly in your browser.
- Enter your values in the input fields provided.
- The result updates immediately — no calculate button needed (or click Calculate where shown).
- Copy or use your result directly. Nothing is stored or sent to any server.
Key Features of CAGR Calculator
- Begin/end value
- Time period
- Growth rate
- CAGR and absolute return
- Year-by-year breakdown
- Formula shown
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Frequently Asked Questions
What is CAGR and how is it calculated?
CAGR (Compound Annual Growth Rate) = (End Value / Beginning Value)^(1/N) - 1. It provides the smoothed annualized return rate over the investment period.
Why is CAGR important?
CAGR eliminates volatility and provides a single comparable growth rate across different investments and time periods, making it the standard metric for investment performance.
What is a good CAGR for investments?
Equity mutual funds: 12-15% long-term, Fixed deposits: 5-8%, Real estate: 8-12%, Gold: 8-10%. Historical Sensex CAGR over 30 years is about 15-16% including dividends.
How is CAGR different from absolute return?
Absolute return is the total percentage change over the whole period, while CAGR is the annual rate that would produce that total, making different-period investments comparable.
Is CAGR reliable for short periods?
Not really - over one or two years CAGR can be very high or negative due to market swings; it is most meaningful over five years or more.