Knowledge Base

CAGR — Compound Annual Growth Rate

CAGR = (End Value / Start Value)^(1/n) − 1

CAGR shows the smoothed annual growth rate, ignoring year-to-year volatility.

It is the single most reliable metric to compare investments across different time periods.

CAGR ≠ average return. A stock going +50% then −33% has 0% CAGR but +8.5% average return.

Nifty 50 historical CAGR: ~12-14% over 20+ years.

Always compare CAGR against inflation (~6%) to know your real returns.

Pro Tip

Use CAGR to compare mutual funds, stocks, FDs, and gold over the same time frame for an apples-to-apples comparison.

CAGR — Compound Annual Growth Rate - Complete Guide

Everything you need to know about CAGR and how to optimize your financial strategy.

Understanding the Formula

The core calculation is based on:

CAGR = (End Value / Start Value)^(1/n) − 1

Key Concepts & Rules

CAGR shows the smoothed annual growth rate, ignoring year-to-year volatility.

It is the single most reliable metric to compare investments across different time periods.

CAGR ≠ average return. A stock going +50% then −33% has 0% CAGR but +8.5% average return.

Nifty 50 historical CAGR: ~12-14% over 20+ years.

Always compare CAGR against inflation (~6%) to know your real returns.

Expert Strategy

Use CAGR to compare mutual funds, stocks, FDs, and gold over the same time frame for an apples-to-apples comparison.

How to use this Calculator?

1. Enter your specific values in the input fields above.
2. The calculator will render instant results as you type.
3. Check the breakdown table for year-by-year projections.
4. Adjust the inputs to see how different scenarios impact the final result.