What CAGR summarises
Compound Annual Growth Rate converts a beginning value and an ending value over a period into one annualised growth rate. It answers the mathematical question: what constant yearly rate would connect those two values if no other cash moved in or out? This can help compare simple endpoint changes over different periods. It does not describe every year’s return, the size of interim declines or whether the investment was suitable for the owner.
Use consistent endpoints
The starting and ending values need the same definition. Decide whether dividends or other distributions are included, whether costs have been deducted and whether both values use the same currency. An index price level and a total-return series measure different things. The official Nifty base-value fact provides context about an index reference point; it is not a claim that an investor could obtain a particular after-cost result merely by applying the CAGR formula.
Dates matter to the annualised figure
This calculator measures the actual days between the two dates and divides by 365.25. The ending date must follow the starting date. Another convention, such as a specific financial day-count basis, can produce a small difference. Very short holding periods can generate dramatic annualised numbers that are not a reasonable forecast. Always read the absolute gain, the total percentage change and the actual elapsed period alongside the annualised result.
A smooth rate can hide a rough journey
Two investments can have the same endpoints and the same CAGR while experiencing very different paths. One may have risen gradually; another may have suffered a deep decline and recovered. This tool shows the actual starting and ending values with a connector, not a reconstruction of historical prices. Only the endpoints are known. It cannot establish volatility, drawdown, liquidity or the emotional and financial difficulty of staying invested during the real period.
Do not use it for a SIP cash-flow history
If money was added or withdrawn between the dates, dividing the ending value by the first investment does not describe the investor’s return correctly. Periodic contributions, partial redemptions and distributions need a method that accounts for their timing, such as XIRR when appropriate. Gather the dated cash-flow record rather than forcing the figures into an endpoint calculator. The fact that the formula produces a number does not make the method suitable for the question.
Use comparisons without turning them into promises
A past annualised return is historical context. It is not a future expected return, a guarantee or a reason by itself to choose an investment. Check comparable periods and definitions, the relevant benchmark, costs and risks. Avoid selecting a favourable start date after seeing the outcome. Save the dates and endpoint sources with the report so another reader can reproduce the calculation and understand exactly what the result does and does not measure.
A worked example
An investment that approximately doubles over five years has an annualised growth rate of about 14.87%. This does not mean it gained 14.87% every year. The path may have included substantial declines.
How to use the calculator and PDF
Open the CAGR Calculator and enter values that match your actual question. Read the labels and units before adjusting a number. The result, chart and schedule use one shared calculation engine. Change one assumption at a time so the effect remains understandable. Check the methodology notes and save a report only after confirming the inputs. The optional name and purpose label personalise the document; they are not required to use the tool. Keep the report with the source records and revisit it when the facts or goal change.
Formula and assumptions
CAGR = ((ending value / beginning value)^(1 / elapsed years) - 1) × 100. Elapsed years = actual number of days / 365.25.
References and limitations
Follow the original NSE Indices reference for the scope of the fact card and current official information. A source date is not evidence that every future assumption will hold. Read the Prasar Trust Centre for the distribution scope and editorial standards for attribution and corrections.
CAGR describes endpoints, not risk, cash-flow timing or a forecast. It is unsuitable for SIPs and other investments with intervening cash flows; a method such as XIRR is needed for those cases. Dividends, fees and tax treatment must be consistent in the values entered.