Calculate Compound Annual Growth Rate from any start and end value - or find the future value for a given CAGR and period.
CAGR = (End Value / Begin Value)^(1/n) − 1. It smooths out year-to-year volatility to give a single steady growth rate over the period.
CAGR ignores interim volatility. A fund down 50% then up 100% shows 0% CAGR - but you never broke even emotionally. Always check rolling returns too.
FD: 6–7.5% · PPF: 7.1% · Nifty 50 (15-yr avg): ~12–13% · Mid cap: ~14–16% · Real estate metro: ~8–12%. Beat the benchmark consistently.
CAGR works for lumpsum. Use XIRR for irregular cash flows (SIP, dividends). XIRR in Excel calculates true annualised return for all cash flow types.
Compound Annual Growth Rate (CAGR) is the most widely used metric for measuring the growth of an investment, business, or any measurable quantity over a period of multiple years. Unlike simple average growth rates which can be misleading, CAGR represents the constant annual rate at which a value would need to grow to reach the ending value from the starting value over the specified number of years. The formula is: CAGR = (End Value / Start Value)^(1/n) - 1, where n is the number of years.
SEBI mandates that mutual fund houses in India report long-term returns using CAGR to ensure investors make like-for-like comparisons. The Nifty 50 index has delivered approximately 12-13% CAGR over the past 20 years, making it a benchmark against which equity mutual funds measure their performance. India's GDP has grown at a CAGR of approximately 6-7% in real terms over the past decade, while sectors like e-commerce, fintech, and electric vehicles have reported CAGRs exceeding 25-30%. CAT and MBA entrance examination syllabi include CAGR problems in the quantitative aptitude sections.
This tool supports three calculation modes: (1) calculating CAGR from a known start value, end value, and number of years; (2) reverse-calculating the future value for a given start value, CAGR, and period; and (3) finding the number of years needed to reach a target value at a specified CAGR. Investors reviewing mutual fund SIP returns, startup founders presenting to VCs, and financial analysts preparing pitch decks all use CAGR regularly. This calculator provides instant, accurate results for all three scenarios without requiring any spreadsheet software.