How to Calculate CAGR for Mutual Fund Investments

Choose comparable endpoints first

The same formula can describe price growth or growth including reinvested distributions. The meaning comes from the values you supply. Check their basis before comparing annual rates.

Raw NAV and adjusted values

Mutual fund CAGR is the constant annual equivalent of growth between two comparable values. Raw NAV is a per-unit price basis. Adjusted monetary endpoints can reflect reinvested distributions if that adjustment is already present.

Use raw NAV to study the change in price per unit. A cash distribution can reduce NAV while putting cash in your account. An adjusted series may reflect reinvestment, so check its definition and use it at both endpoints.

Compare two periods on a consistent basis

Compare the same fund share class over different horizons or two funds over matched dates and consistent valuation conventions. A return comparison alone does not measure investment risk.

Mutual fund CAGR formula

Divide ending value E by opening value B to get the growth factor. For a horizon T in years, CAGR = (E/B)^(1/T) − 1. Holding-period change is E/B − 1 and the signed value change is E − B.

CAGR = (E / B)^(1 / T) − 1

Verify growth and loss

Comparable reinvestment-adjusted values of 10,000 and 12,100 over two years give a 1.21 growth factor, 21% total change and 10% CAGR. An ending value of 8,100 instead gives −19% total change and −10% CAGR.

On a raw NAV basis, values of 100 and 121 per unit over the same two years also give 10% CAGR. Here the value change is 21 per unit and distributions are outside the raw price comparison.

1. Load the worked example to see 21% total change and 10% annualized.
2. Try 24 months instead of two years. Re-enter duration after changing the unit.
3. Select raw NAV and enter 100 and 121 on that basis.

Read total change and CAGR separately

The annualized rate describes the endpoints over the supplied horizon. It does not show the path, volatility, interim drawdown or what happened in a specific year. Under a raw NAV basis, the result is price change per unit.

An unchanged value gives zero. A balance that grew from 10,000 to 10,500 in six model months rose 5% over the period, which annualizes to 10.25%. This does not imply the next six months will repeat.

Keep both values on one basis

Choose the basis and enter the two monetary values for the same share class, currency and scale. Choose years or equal months and enter duration. Changing the basis clears both values. Changing the duration unit clears the duration.

Use one currency throughout and enter the actual numeric amounts. The display option does not fetch exchange rates.

CAGR, XIRR and reported fund returns

CAGR uses two endpoints. XIRR uses dated flows and a remaining valuation when appropriate. Published fund returns may use their own conventions for distributions and sales charges, so check the factsheet before comparing.

Use a supplied model horizon

Use comparable endpoints with no intervening external cash flows. For personal return with dated purchases, redemptions or cash distributions use Mutual Fund XIRR. Equal months use 12 per year with no calendar-day convention.

For a return that includes reinvestment, enter monetary endpoints already adjusted to represent that reinvestment. The calculator does not reconstruct holdings from a distribution history.

Respect input and reporting limits

Opening value must be from 10^−12 to 10^30. Ending value may also be zero. Duration must equal 0.01 to 1,000 years. Inputs support up to 12 decimal places. The engine uses 50 significant digits and rejects unsupported annualized values above its 10^10 annual-factor bound or too close to −100% to classify reliably.

Zero opening value and zero horizon are undefined for this ratio. Complete loss is reportable when the ending amount is zero, while some extreme positive remaining values give annualized losses too close to −100% for the numerical domain.

Avoid mixing return definitions

Do not mix raw and adjusted values, unit scales, currencies or share classes. Do not add distributions to values that already reflect them. Sub-year annualization is a mathematical extrapolation.

Use a consistent class and currency. Do not combine raw NAV with an adjusted ending value or use money invested in several SIP purchases as though it were present for the entire period.

Read the local labels and units

In India NAV is a common starting point for fund comparisons. US reports may show average annual total returns. For UK, Canadian and Australian readers, confirm whether the published value is per unit, an account valuation or already adjusted. The selector supports INR, USD, GBP, CAD and AUD.

Educational scope

Educational endpoint calculation. It does not infer distributions, fees, tax, dates, FX or a regulated performance figure. It does not provide investment advice or predict returns.

Frequently asked questions

Sources and review

Sources reviewed Nov 10, 2026. Consult current local rules before relying on time-sensitive information.

• Groww CAGR calculator
• SEC shareholder report bulletin
• MoneyHelper investing overview
• OSC investor education
• ASIC managed fund guide