CAGR (Compound Annual Growth Rate) Calculator 2026

About the CAGR Calculator

Compound Annual Growth Rate (CAGR) (CAGR) is the smoothed-out, annualized rate at which an investment would have to grow each year to reach the end value from the start value. It strips out the ups and downs and gives you a single comparable number — which is why it's the standard for comparing mutual funds, stocks, and businesses.

CAGR isn't the actual year-by-year return — those typically swing widely. It's the geometric mean of returns. For investments held under one year, use absolute return; CAGR only makes sense for multi-year holdings.

How it Works

• Initial value — what you invested or the starting NAV/price.
• Final value — current value or sale value.
• Holding period — number of years between the two.

CAGR Formula

Benefits of CAGR

• Standardized return measure — compare any two investments fairly.
• Smooths volatile year-on-year returns into a single number.
• Used universally in mutual fund factsheets, stock reports, and SEBI disclosures.
• Easy to translate into expectations: "12% CAGR doubles money in ~6 years" (Rule of 72).

Caveats

• Hides volatility. Two funds with identical CAGR can have wildly different risk.
• Sensitive to start/end dates — picking different windows gives different CAGRs.
• For investments with cash flows in/out (SIPs), use XIRR/SIP returns instead.

References

• AMFI — Mutual fund return disclosures
• SEBI — Investor education on returns
• Investopedia — CAGR definition and worked examples