Calculate Compound Annual Growth Rate (CAGR) for investments, revenue or any metric over a period.
CAGR (Compound Annual Growth Rate) is the rate at which an investment grows from its initial value to its final value, assuming it grew at a steady rate annually. It smooths out volatility and gives a single representative growth rate.
Formula: CAGR = (Final Value / Initial Value)^(1/n) – 1, where n = number of years.
Typical CAGR benchmarks: Nifty 50 long-term ~12–14% | Real estate ~8–10% | Fixed deposits ~6–7% | Inflation ~5–6%