What is the CAGR Calculator?
CAGR (Compound Annual Growth Rate) tells you the smooth annual rate at which an investment grew from its starting to its ending value, ignoring intermediate volatility. The FinanceDeck CAGR Calculator gives you this single, comparable number in one click.
It's the go-to metric for comparing investments over different periods — a fund that returned 60% in 3 years and one that returned 100% in 6 years look tied in absolute terms but very different in CAGR (17% vs 12%).
How does it work?
The calculator uses the standard CAGR formula CAGR = (End/Start)^(1/years) − 1, expressed as a percentage. Enter your buy value, current or sell value, and the number of years you held. Result appears instantly.
CAGR smooths out volatility — a fund can have wild swings year-to-year but a decent CAGR overall. Always pair CAGR with a volatility check before comparing risky vs. safe investments.
CAGR = (End / Start)^(1 / Years) − 1Example
Buy a stock at ₹1,00,000, sell at ₹2,50,000 five years later.
CAGR = (2.5)^(1/5) − 1 = 20.11%. The absolute return is 150% but the annualised rate is what tells you whether you beat inflation and a benchmark index.
Benefits
- ✓Compare investments across different tenures
- ✓Benchmark against index or fixed-income returns
- ✓One number, easy to reason about
- ✓Great for post-mortem of past investments
- ✓Works for any asset — stocks, gold, real estate
Frequently Asked Questions
Is CAGR the same as average return?
No. Simple average ignores compounding and always overstates real growth for volatile assets. CAGR is the correct measure.
What about dividends?
For a total-return CAGR, use end value including dividends reinvested. Price-only CAGR understates real returns.
What CAGR is 'good'?
It depends on risk. Beating inflation (6–7% in India) is baseline. 12%+ over 10 years is very good for equity; 8%+ for debt.
Can CAGR be negative?
Yes — if end value is below start value. The calculator handles this and shows a red result.
Related Calculators
Plan every goal in one place
Combine your loans, SIPs and savings inside the free FinanceDeck Planner.
Learn more in the Learning Center
Deep-dive guides that explain the concepts behind the CAGR Calculator.