How this calculator works
CAGR (Compound Annual Growth Rate) answers "what single constant annual rate would take my starting value to my ending value, over this many years?" — smoothing out year-to-year volatility into one comparable number.
CAGR = (End Value / Start Value)(1/years) − 1
FAQs
What's a good CAGR for equity investments?
Nifty 50 index funds have historically delivered roughly 12-14% CAGR over 10-20 year periods — useful as a benchmark, not a guarantee for any specific future period.
How is CAGR different from average annual return?
A simple average of yearly returns can be misleading with volatile numbers (e.g. +50% then -50% averages to 0%, but actually loses money). CAGR accounts for compounding and reflects the real growth rate.