CAGR Calculator
Compound Annual Growth Rate — find the annualised return of any investment
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CAGR
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Absolute return
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Total gain
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Initial value
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Final value
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Calculate CAGR in Excel:
=(B1/A1)^(1/C1)-1Frequently Asked Questions
What is CAGR and how is it calculated?
CAGR is the rate at which an investment would have grown if it grew at a steady rate compounded annually. Formula: CAGR = (Final / Initial)^(1/Years) − 1. Example: ₹1,00,000 → ₹2,00,000 in 5 years → CAGR = (2)^(0.2) − 1 = 14.87% per year.
What is the difference between CAGR and absolute return?
Absolute return = (Final − Initial) / Initial × 100. It tells you total gain but ignores time. CAGR converts that into an annual rate, making it easy to compare investments of different durations. A 100% absolute return over 5 years = 14.87% CAGR — very different from 100% per year.
What is a good CAGR for a mutual fund in India?
Indian equity mutual funds have historically delivered 10–15% CAGR over long periods (10+ years). Large-cap funds tend to deliver 10–13%, mid/small-cap 13–18% — but with higher volatility. Always compare a fund's CAGR against its benchmark index for the same period before drawing conclusions.
How do I calculate CAGR in Excel?
Formula:
=(ending_value/beginning_value)^(1/years)-1. Format the cell as Percentage to see the result as %. You can also use =RATE(years,0,-beginning_value,ending_value) which gives the same result.