📊 CAGR Calculator
Compound Annual Growth Rate is the most accurate way to measure the historical return of your investments (like Mutual Funds, Real Estate, or exact Stock prices).
Why CAGR is the Gold Standard
Absolute Return vs CAGR
Let’s say you bought a piece of land for ₹10 Lakhs and sold it for ₹20 Lakhs. You made an Absolute Return of exactly 100%.
But is it a good investment? If you sold it after 2 years, that’s an incredible ~41% CAGR. However, if it took 15 years to double your money, your CAGR is a measly 4.7% (worse than an FD!). Time matters. CAGR mathematically accounts for duration.
CAGR “Smoothes” Volatility
Mutual Funds and Stocks do not grow in a straight line. If an index goes +30% one year, -15% the next year, and +20% the third year, what is your actual return rate? Standard averaging gives the wrong answer. Calculating the CAGR between the Year 0 Start Value and Year 3 End Value gives you the exact equivalent yearly growth rate as if it were a fixed deposit.
What is a “Good” CAGR?
- 5% – 7%: Standard Fixed Deposits, Post Office, Savings bonds (Safest).
- 8% – 10%: High Tier Debt Funds, Corporate FDs, EPF.
- 10% – 15%: Large Cap Mutual Funds & Standard Market Index (Nifty 50).
- 15% – 20%+: Excellent Small/Mid Cap mutual fund investing or individual stock picking (High Risk).