CAGR Calculator — Measure True Investment Performance
Calculate CAGR to understand the true annualized return of any investment. Compare performance across mutual funds stocks real estate and other asset classes.
CAGR or Compound Annual Growth Rate is the single most important metric for comparing investment performance. Unlike absolute returns which can be misleading CAGR gives you the smoothed annual rate of return that accounts for compounding. If someone tells you their investment doubled in 5 years the CAGR is 14.87% per year. If it tripled in 10 years the CAGR is 11.61%. This metric lets you compare any two investments on an equal footing regardless of tenure.
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Key Information
| Parameter | Details |
|---|---|
| CAGR Formula | (Ending Value / Beginning Value)^(1/Years) - 1 |
| Nifty 50 CAGR (10 year) | 12% - 14% |
| Gold CAGR (10 year) | 8% - 10% |
| Real Estate CAGR (10 year) | 6% - 9% |
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Use Calculator NowFrequently Asked Questions
What is a good CAGR?
A good CAGR depends on the asset class and risk level. For equity mutual funds 12-15% CAGR over 5+ years is considered good. For debt funds 7-9% is good. For real estate 8-10% CAGR is respectable. Always compare CAGR against inflation (currently 5-6%) to understand real returns. Any investment delivering CAGR below inflation is actually losing purchasing power.
How is CAGR different from average returns?
Average returns simply add up annual returns and divide by years which can be misleading. For example if an investment gains 50% in year 1 and loses 33% in year 2 the average return is 8.5% but the CAGR is actually 0% because Rs 100 becomes Rs 150 then drops back to Rs 100. CAGR accounts for the compounding effect and gives the true growth rate.
Why do mutual funds show different return figures?
Mutual funds show absolute returns trailing returns and CAGR for different time periods. A fund showing 80% absolute returns may look better than one showing 50% but if the first is over 5 years (CAGR 12.5%) and the second is over 3 years (CAGR 14.5%) the second fund actually performed better on an annualized basis.
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Last updated: 24 March 2026