CAGR Calculator

 
 

CAGR Return: ₹ 0

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About – CAGR Calculator

 
What does CAGR stand for and what is its meaning?

CAGR stands for Compounded Annual Growth Rate. It is a widely-used metric in the financial world to evaluate the annual growth rate of an investment over a specific period of time. Unlike simple returns, CAGR smooths out the volatility and represents the consistent year-over-year growth rate assuming the investment had grown at the same rate each year.

You can calculate the CAGR of your investment quickly and accurately using the SharmaStox CAGR Calculator.

How to calculate CAGR online?

Using our online CAGR calculator is simple. Just enter:

  • Beginning Value of your investment
  • Ending Value (final value of investment)
  • Tenure (in years)

Once entered, the calculator uses the following formula to give you your CAGR result:

CAGR = ((Ending Value / Beginning Value) ^ (1 / Period)) - 1
What is a Good CAGR?

A CAGR above 10% is typically considered a good return in most cases. However, it depends on the type of investment:

  • Equity Instruments: 15% – 30% CAGR is considered good
  • Fixed Income Instruments: 8% – 12% CAGR is considered stable and attractive
💡 Tip: Use CAGR to analyze long-term investments like mutual funds, stocks, fixed deposits, or any asset where growth is measured over multiple years.
Difference Between CAGR and Absolute Return

It’s important to distinguish between CAGR and Absolute Return:

  • Absolute Return shows the total percentage increase in value over a period, but doesn’t consider the time factor.
  • CAGR provides the annual growth rate over time, making it more useful for long-term comparison and decision-making.

Absolute return is fine for investments under 1 year, but CAGR is preferred for anything long-term.

How to Use the SharmaStox CAGR Calculator?

Our online CAGR calculator can be used for a wide range of investment types:

  • Mutual Fund CAGR
  • Stock/Equity CAGR
  • Fixed Deposit CAGR
  • Portfolio CAGR

To use it, simply enter:

  • Your initial investment
  • Your final investment value
  • The number of years of the investment

The calculator will instantly provide the CAGR %, helping you evaluate if your returns meet your financial goals.

Why Use a CAGR Calculator?
  • Evaluate and compare performance of different investments
  • Understand real annualized returns
  • Plan better by setting realistic growth expectations
  • Save time and eliminate calculation errors
Final Thoughts

CAGR is one of the most reliable tools for understanding the long-term performance of an investment. Whether you're analyzing mutual funds, stocks, or real estate – the SharmaStox CAGR Calculator will help you make smarter and more informed financial decisions.