📈 Formula: (EV/BV)^(1/n)−1📅 Calculate CAGR or FV⚡ Multi-Rate Comparison
CAGR Calculator
Calculate Compound Annual Growth Rate for any investment, or find the future value at a given CAGR. Compare returns across multiple growth rates.
Beginning Value
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Ending Value
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Beginning Value
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Expected CAGR
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Number of Years
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CAGR
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Compound Annual Growth Rate
Beginning Value
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Ending Value
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Absolute Return
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Total Gain
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Wealth Multiple
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Years
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📝 Formula
CAGR = (EV / BV)^(1/n) − 1
EV = Ending Value | BV = Beginning Value | n = Number of years Future Value = BV × (1 + CAGR)^n | Absolute Return = (EV−BV)/BV × 100
📈 Future Value at Different CAGRs (same BV & years)
Value Growth Over Years
Year
Opening Value
Growth
Closing Value
ⓘ CAGR assumes steady compounded growth and does not reflect year-to-year volatility. Actual mutual fund and stock returns fluctuate significantly. Past CAGR is not a guarantee of future returns.
Frequently Asked Questions
What is CAGR? +
CAGR (Compound Annual Growth Rate) is the rate at which an investment grows from its beginning value to its ending value, as if it grew at a steady compounded rate each year. Formula: CAGR = (EV/BV)^(1/n) − 1. It smooths out volatile year-to-year returns into a single, comparable annual rate.
What is a good CAGR for mutual funds in India? +
Benchmarks: FD ~7%, Debt funds ~8-9%, Large-cap equity ~12-14%, Mid-cap ~14-18%, Small-cap ~16-22%. The Nifty 50 has delivered ~13-14% CAGR over 20 years. Anything above 15% consistently over 10+ years is considered excellent. Compare your fund's CAGR with its benchmark index CAGR.
How is CAGR different from absolute return? +
Absolute return tells you total % gain without considering time. CAGR gives the per-year compounded rate. Example: ₹1L → ₹2.5L in 8 years. Absolute return = 150%. CAGR = (2.5)^(1/8) − 1 = 12.13% per year. Always use CAGR to compare investments of different time periods.
How to calculate CAGR in Excel? +
=((Ending_Value/Beginning_Value)^(1/Years))-1. Format as percentage. Example: BV=100000, EV=250000, n=8. =((250000/100000)^(1/8))-1 = 12.13%. Alternative: use =RATE(n,0,-BV,EV) which gives the same result.
Can CAGR be negative? +
Yes. If EV < BV, CAGR is negative. Example: ₹1L invested, now worth ₹70K after 5 years. CAGR = (0.7)^(1/5) − 1 = −6.9%/year. Negative CAGR means the investment destroyed wealth over the period.
What is XIRR and when should I use it instead of CAGR? +
CAGR works only for a single lump sum investment and redemption. XIRR handles multiple cash flows at different dates — making it the right tool for SIPs, systematic withdrawals, and dividend-reinvestment scenarios. For SIP investors, always use XIRR, not CAGR, for accurate return measurement.