CAGR Calculator
Measure the annualised growth rate of any investment or strategy and benchmark it against NIFTY 50.
Simple return (80% over 3 years) is misleading — it ignores timing. CAGR smooths this into an equivalent annual rate that allows fair comparison across any time period.
NIFTY 50 benchmark CAGRs: 10-year historical ~13%, 5-year ~15%, 3-year varies widely. Any strategy not beating NIFTY 50 CAGR on a risk-adjusted basis should be replaced with a simple index fund.
The CAGR Calculator measures the Compound Annual Growth Rate of any investment or trading strategy — the single most useful number for evaluating long-term performance. CAGR smooths out year-to-year volatility and expresses returns as a consistent annual percentage, allowing fair comparison between investments held for different periods. For NSE traders, CAGR is the standard metric used to benchmark strategy performance against the NIFTY 50 index, Fixed Deposits, and other alternatives. Any active trading strategy that does not generate CAGR higher than NIFTY 50's historical 12–14% is mathematically inferior to simply buying a NIFTY 50 index fund — which requires zero time, zero expertise, and zero transaction costs. The Momentum IQ backtesting engine reports CAGR for every strategy, making it easy to compare strategies and benchmark against market returns. Always evaluate backtested strategies on CAGR over at least 3 years of data to account for different market cycles (bull market, bear market, and sideways consolidation).