Enter the starting value, ending value and the holding period in years. Results update in real time.
If your start value grew at a constant rate instead, these are the end values after 5 years:
| Rate | End Value | vs Your Actual |
|---|
Context: diversified equity funds have historically delivered ~11-14% CAGR over long periods; debt ~6-8%; FD rates are near 7%.
How is CAGR calculated?
CAGR = (End Value / Begin Value)^(1/years) - 1. If 1 lakh becomes 2 lakh in 5 years, CAGR = (2)^(1/5) - 1 = 14.87%. It smooths the journey into one annual figure - actual yearly returns will have zig-zagged around it.
What is a good CAGR for mutual funds?
Long-horizon diversified equity funds have historically delivered roughly 11-14% CAGR in India; debt funds 6-8%. Always compare funds over the same period, and remember past performance does not guarantee future returns.
Absolute return vs CAGR: which matters?
Absolute return is your total gain (100% if 1 lakh became 2 lakh). CAGR annualises it (14.87% per year over 5 years). Use CAGR to compare investments held for different periods - absolute figures mislead when durations differ.
CAGR is a mathematical average and does not reflect volatility or actual year-wise returns. It is not a forecast. Verify figures with your statement before making decisions. This tool is for information only and is not financial advice.