📐 Formula Used
CAGR = (Ending Value / Beginning Value)^(1/Years) – 1 Future Value = Present Value × (1 + CAGR)^Years
Frequently Asked Questions
What is CAGR?
CAGR (Compound Annual Growth Rate) is the rate at which an investment grows from beginning to ending value, assuming profits are reinvested at the end of each period.
How is CAGR calculated?
CAGR = (Ending Value / Beginning Value)^(1 / Number of Years) – 1
What is a good CAGR for stocks?
Indian large-cap indices have delivered ~12–14% CAGR over 15+ years. Mid/small-caps can deliver 15–20%+ but with higher risk.
What is the difference between CAGR and absolute return?
Absolute return = (Final–Initial)/Initial × 100%. CAGR annualises the return, making it comparable across different time periods.