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Finance Calculators

CAGR Calculator

Calculate the Compound Annual Growth Rate (CAGR) of an investment between an initial and final value over a given period.

What you started with, e.g. 5 L or 500000.

What it's worth today, e.g. 12 L or 1200000.

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Will my retirement savings last?See whether that growth rate is enough to fund your retirement

Frequently Asked Questions

What does CAGR tell me that a simple average return doesn't?
CAGR smooths out the effect of compounding over multiple years into a single annual rate, so it reflects the actual year-over-year growth rate of your investment rather than being skewed by one unusually good or bad year the way a simple average can be.
What's a "good" CAGR?
It depends on the asset class — equity markets have historically returned roughly 10-12% CAGR over the long run in many markets, while safer instruments like fixed deposits typically return less. Compare your CAGR against a relevant benchmark, not an absolute number.
Does CAGR account for inflation?
No — CAGR is a nominal growth rate. To see what your money actually gained in purchasing power, subtract the inflation rate from your CAGR to get a real (inflation-adjusted) return.