Beating inflation plus 4–6% is good for long-term equity; 12%+ over 10 years is strong. Bank FDs typically deliver 6–7.5%.

CAGR works for a single investment and a single redemption. For SIPs or multiple cash flows, use XIRR.

CAGR Calculator – Compound Annual Growth Rate

CAGR tells you the steady yearly rate at which an investment grew. It is the fairest way to compare returns over different periods.

CAGR

20.11%

Formula

CAGR = (Final value ÷ Initial value)^(1 ÷ years) − 1

₹1 lakh growing to ₹2.5 lakh in 5 years is a CAGR of 20.1%, even though the absolute return is 150%.

What is a good CAGR?: Beating inflation plus 4–6% is good for long-term equity; 12%+ over 10 years is strong. Bank FDs typically deliver 6–7.5%.
CAGR vs XIRR?: CAGR works for a single investment and a single redemption. For SIPs or multiple cash flows, use XIRR.

Last reviewed 2026-10-31. Results are estimates for information only and do not constitute financial, tax or legal advice.