CAGR Calculator
Calculate CAGR of any investment. Enter initial & final value to see compound annual growth rate with Rule of 72 doubling time.
Projection at 24.6% CAGR
| Years | Value | Growth |
|---|---|---|
| 1 yr | ₹1,24,573 | 24.6% |
| 3 yr | ₹1,93,318 | 93.3% |
| 5 yr | ₹3,00,000 | 200.0% |
| 10 yr | ₹9,00,000 | 800.0% |
| 15 yr | ₹27,00,000 | 2600.0% |
| 20 yr | ₹81,00,000 | 8000.0% |
Frequently Asked Questions
What is CAGR?
CAGR (Compound Annual Growth Rate) measures the average annual growth rate of an investment over a specified period, assuming profits are reinvested. Formula: CAGR = (Final/Initial)^(1/years) - 1.
How is CAGR different from average return?
Average return simply adds up yearly returns and divides by years, ignoring compounding. CAGR accounts for the compounding effect and gives the smoothed annual rate that would produce the same end result.
What is a good CAGR?
It depends on the asset class. Equity (Nifty 50) has delivered ~12-15% CAGR historically. FDs give 6-7%, gold ~8-10%, real estate 8-12%. Compare CAGR against inflation (6-7%) for real returns.
Can CAGR be negative?
Yes. If your final value is less than the initial value, CAGR will be negative, indicating your investment lost value on average each year over the period.
Is CAGR the same as IRR?
For a single lumpsum investment, CAGR and IRR are the same. But for multiple cash flows (like SIPs), you need XIRR/IRR. CAGR only works for a single initial investment.