CAGR Calculator (Compound Annual Growth Rate)
Calculate the Compound Annual Growth Rate of any investment or business metric. Free, instant, and private — no signup required.
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What Is CAGR
The cagr full form is Compound Annual Growth Rate. In simple terms, the CAGR tells you how much your money or any value would have grown each year at a steady rate over a period of time.
It smooths out ups and downs and shows a single, consistent yearly growth rate from start to finish.
How to Use Munim’s CAGR Calculator Online
Munim’s compound annual growth rate calculator is designed to save time and eliminate manual errors. Here is how it works.
- Step 1: Enter the Initial Value (your starting investment amount or beginning metric in ₹).
- Step 2: Enter the Final Value (the final amount after growth).
- Step 3: Enter the Time Period in years (can include decimals, e.g., 3.5 years).
- Step 4: Click “Calculate.”
The tool instantly displays your CAGR as a percentage.
The cagr calculator online tool on this page is completely free and requires no signup, login, or personal information. It runs entirely in your browser, so your data stays private. Whether you are checking mutual fund performance, stock returns, or business growth, you get results in under a second.
CAGR Formula: How the Math Works
The standard cagr formula is:
CAGR = (Ending Value ÷ Beginning Value) ^ (1 ÷ Number of Years) − 1
Written more formally:
CAGR = (EV / BV)^(1/n) − 1
Here is what each component means:
EV (Ending Value): The final value of the investment or metric at the end of the period.
BV (Beginning Value): The initial value at the start of the period.
n (Number of Years): The total duration in years.
Worked Example in Indian Rupees
Suppose you invested ₹1,00,000 in a Nifty 50 index fund in January 2019. By January 2024, the value stands at ₹2,50,000.
BV = ₹1,00,000
EV = ₹2,50,000
n = 5 years
CAGR = (2,50,000 / 1,00,000)^(1/5) − 1 CAGR = (2.5)^(0.2) − 1 CAGR = 1.2011 − 1 CAGR = 0.2011 or approximately 20.11%
So even though the actual yearly returns fluctuated, the investment grew at an equivalent steady rate of about 20.11% per annum.
How to Calculate CAGR Step by Step
Understanding how to calculate cagr becomes much easier with practical scenarios. Here are three examples Indian readers will relate to.
Example 1: Mutual Fund Lump Sum Investment
Radhika invested ₹3,00,000 in a flexi cap mutual fund in April 2019. By April 2024, her portfolio value is ₹5,85,000.
- Identify BV = ₹3,00,000, EV = ₹5,85,000, n = 5.
- Divide: 5,85,000 ÷ 3,00,000 = 1.95.
- Raise to the power of 1/5: (1.95)^0.2 = 1.1431.
- Subtract 1: 1.1431 − 1 = 0.1431.
- Multiply by 100: CAGR ≈ 14.31%.
Example 2: Single Stock Investment
Arjun bought shares of a listed FMCG company on BSE at ₹1,800 per share in 2021. By 2025, the stock trades at ₹3,100.
- BV = ₹1,800, EV = ₹3,100, n = 4 years.
- CAGR = (3,100 / 1,800)^(1/4) − 1 = (1.7222)^0.25 − 1 ≈ 0.1456 or 14.56%.
This tells Arjun his stock compounded at roughly 14.56% annually, regardless of the roller coaster the price took each year.
Example 3: Business Revenue Growth
A Surat based textile exporter recorded revenue of ₹4.2 crore in FY 2021 and ₹7.8 crore in FY 2025.
- BV = ₹4.2 crore, EV = ₹7.8 crore, n = 4 years.
- CAGR = (7.8 / 4.2)^(1/4) − 1 ≈ 16.74%.
Business owners and accountants can use this number to benchmark against industry averages, prepare investor presentations, or plan future projections.
CAGR Calculator for Stocks
A stock cagr calculator is one of the simplest ways to measure how well an individual stock has performed over multiple years. Indian equity markets listed on NSE and BSE can be volatile on a day-to-day basis, but CAGR smooths those fluctuations into a single figure.
For instance, consider a well known Indian IT stock that traded at ₹620 in June 2020 and reached ₹1,540 by June 2025. Over this five year window, the CAGR works out to approximately 19.94%. That one number tells an investor more about long term performance than scanning five separate annual return figures.
However, keep one thing in mind. CAGR works best for lump sum investments in stocks, where there is one buy and one sell point. If you added shares at different times through a systematic approach, CAGR alone will not capture the full picture. For that, XIRR is the better metric, which is discussed further below.
CAGR Calculator for Mutual Funds
A mutual fund CAGR calculator helps investors easily understand how much their investment has grown over time at a steady yearly rate.
Platforms like AMFI and mutual fund companies usually show returns in CAGR for different periods like 1 year, 3 years, 5 years, or 10 years.
So when someone says, “this large cap fund gave 15% returns in 5 years,” it simply means the fund’s average yearly growth rate (CAGR) is 15%.
CAGR vs XIRR for SIP Investors
This is a common point of confusion among Indian mutual fund investors, and it deserves a clear explanation. CAGR assumes one lump sum investment at the start and one redemption at the end. But most Indian investors use SIPs (Systematic Investment Plans), where money goes in every month.
Because each SIP instalment enters the fund at a different date and NAV, CAGR cannot accurately represent the return. XIRR (Extended Internal Rate of Return) accounts for the timing and size of every individual cash flow, making it the correct metric for SIP returns.
If you invested through monthly SIPs, use XIRR. If you invested a single lump sum, CAGR is perfectly appropriate.
CAGR vs Absolute Returns vs XIRR
Indian investors frequently encounter these three metrics. Here is when each one applies.
| Metric | What It Measures | Best Used When | Limitation |
| Absolute Return | Total gain or loss as a single percentage from start to end | Short term investments (under 1 year) | Does not account for time; a 40% return in 2 years looks the same as 40% in 6 years |
| CAGR | Smoothed annualised growth rate assuming one lump sum | Lump sum investments held over 1+ years | Ignores interim cash flows (SIPs, partial withdrawals) and volatility |
| XIRR | Annualised return accounting for every cash flow and its timing | SIPs, staggered investments, or any scenario with multiple cash flows | Requires exact dates and amounts for each transaction |
Quick rule for Indian investors: Use absolute returns for anything under a year. Use CAGR for lump sum investments beyond one year. Use XIRR the moment SIPs, additional purchases, or partial redemptions are involved.
What Is a Good CAGR in India?
A “good” CAGR is not the same for every investment. It depends on the type of asset and how long you stay invested.
Here are simple, real-world benchmarks based on typical Indian market performance to help you understand what is considered good.
| Asset Class | Typical CAGR Range (10 Year Horizon) | Notes |
| Nifty 50 (Index) | 11% to 14% | The Nifty 50 has delivered roughly 12% to 13% CAGR over several rolling 10 year periods ending 2025 |
| Large Cap Equity Mutual Funds | 12% to 16% | Top quartile funds have occasionally exceeded 15% |
| Mid/Small Cap Equity Funds | 14% to 20%+ | Higher potential but significantly higher volatility |
| Fixed Deposits | 5.5% to 7.5% | Pre tax; effective post tax CAGR drops further |
| Gold | 8% to 11% | Gold in INR has benefited from rupee depreciation against the dollar |
| Real Estate (Tier 1 Cities) | 7% to 10% | Highly location dependent; rental yield not included |
A few things to note. If your equity mutual fund shows a CAGR below 10% over a decade, it has likely underperformed the broader market. On the other hand, any scheme promising a guaranteed CAGR above 20% over long periods should raise red flags. Markets simply do not work that way consistently.
These benchmarks help answer the frequently searched question: “What is a good CAGR for mutual funds in India?” For equity funds, anything consistently above the Nifty 50’s CAGR over the same period is generally considered solid performance.
CAGR in Business and Revenue Growth
CAGR is not limited to investments. Indian business owners, chartered accountants, and CFOs regularly use it to track operational metrics.
- Revenue CAGR
tells stakeholders how fast a company’s top line has grown. When an Indian SaaS startup reports “45% revenue CAGR over three years” in a pitch deck, investors instantly understand the growth trajectory without needing year by year breakdowns. - Profit CAGR
isolates bottom line growth. A manufacturing firm in Pune might show 18% revenue CAGR but only 8% profit CAGR over the same period, signalling margin compression that raw revenue numbers would hide. - Customer or user base CAGR
is common in tech and D2C companies. If an e-commerce platform grew from 2 lakh active users in 2022 to 6.5 lakh in 2025, the user base CAGR is approximately 48%. That single number communicates traction far more effectively than a chart with monthly ups and downs.
