Loading tool...
Search for a command to run...
Calculate Compound Annual Growth Rate — measure your investment's true annualized return
Enter investment details and click Calculate CAGR
CAGR (Compound Annual Growth Rate) is the annualized rate of return that an investment would need to grow from its beginning value to its ending value, assuming profits are reinvested each year. Unlike simple average returns, CAGR smooths out the volatility of year-to-year returns and gives you a single, clean percentage that represents steady growth. The formula is CAGR = (Ending Value / Beginning Value)1/n − 1, where n is the number of years. For example, if you invested Rs 1,00,000 and it grew to Rs 2,50,000 in 5 years, your CAGR is 20.11% — even though the actual annual returns may have fluctuated between −10% and +40%.
CAGR is widely used in India for evaluating mutual fund performance, stock returns, and business revenue growth. SEBI mandates that mutual fund houses report returns using CAGR for periods longer than one year. When comparing two SIP investments or evaluating whether your portfolio is beating inflation, CAGR is the gold standard metric. It eliminates the distortion caused by irregular returns and gives you a true picture of compounded growth.
Average return and CAGR can give very different results for the same investment. Consider an investment that returns +50% in year 1 and −50% in year 2. The average return is 0%, suggesting break-even. But Rs 1,00,000 becomes Rs 1,50,000 after year 1 and then Rs 75,000 after year 2 — a loss of Rs 25,000. The CAGR is −13.4%, which accurately reflects the actual loss. This happens because average return ignores the compounding effect. CAGR accounts for it, making it a far more reliable measure for evaluating investment performance over multiple years.
In practice, when a mutual fund claims “15% average annual return,” your actual wealth growth may be lower due to volatility drag. Always ask for CAGR when evaluating any investment spanning more than one year. The higher the volatility, the larger the gap between average return and CAGR.
CAGR is the most reliable way to compare investments with different time horizons, starting amounts, and volatility profiles. For instance, comparing a mutual fund that turned Rs 5L into Rs 15L in 7 years (CAGR: 16.99%) with a stock that turned Rs 2L into Rs 8L in 5 years (CAGR: 31.95%) clearly shows the stock outperformed on an annualized basis, even though the mutual fund earned a higher absolute amount. Similarly, you can compare real estate (typical CAGR: 8-10% in India), gold (~8% over 20 years), PPF (7.1% guaranteed), and equity mutual funds (12-15% historically) on an equal footing.
When using CAGR for comparison, remember that it does not capture risk. A 12% CAGR from a diversified index fund (lower risk) is generally preferable to 12% CAGR from a single mid-cap stock (higher risk). Always consider CAGR alongside other metrics like standard deviation, maximum drawdown, and Sharpe ratio for a complete investment analysis.
| Feature | JumpTools | ClearTax | Groww | ICICI Direct | Finology |
|---|---|---|---|---|---|
| Price | Free | Free (ads) | Free | Free (login) | Free (ads) |
| Registration | No signup | Optional | Required | Required | No signup |
| Benchmark Comparison | Nifty/PPF/FD/Gold | No | No | No | Limited |
| Growth Chart | Interactive line chart | Basic | Basic | No | Basic |
| Year-by-Year Table | Full breakdown | No | No | No | No |
| Pre-computed Table | 150 rows, 6 rates | No | No | No | No |
| Privacy | 100% client-side | Server-based | Server-based | Server-based | Server-based |
Calculate CAGR from beginning value, ending value, and duration instantly.
Compare your CAGR against Nifty 50, PPF, FD, Gold, and inflation benchmarks.
Recharts-powered line chart showing year-by-year portfolio growth.
Detailed table with value and growth amount for each year.
See how many times your investment multiplied (e.g., 3.5x).
Pre-computed CAGR values for Rs 1L to Rs 1.5Cr at 6 different growth rates.
Enter Beginning Value Set the initial investment amount (Rs 1K to Rs 10Cr).
Enter Ending Value Set the final value of your investment (Rs 1K to Rs 50Cr).
Set Duration Choose the number of years (1-30) for the investment period.
Analyze Results View CAGR %, absolute return, growth chart, and benchmark comparisons.
Calculate Compound Annual Growth Rate instantly. Benchmark comparison against Nifty 50, PPF, FD, Gold. Year-by-year growth chart. Investment multiple (Nx). 100% client-side.