investment

CAGR Calculator

Calculate the Compound Annual Growth Rate of your investment over any period.

yrs
CAGR20.11%
Absolute Gain₹1,50,000
Absolute Return150.00%

Growth Trajectory

How is this calculated?

CAGR Formula:

CAGR = (Final Value / Initial Value) ^ (1 / Years) - 1

This gives the constant annual return rate that would take the initial value to the final value over the given period.

Frequently Asked Questions

What is CAGR?
CAGR (Compound Annual Growth Rate) represents the rate at which an investment would have grown if it had grown at a steady rate each year. It smooths out volatility to give a single annualised return figure.
How is CAGR different from absolute return?
Absolute return shows the total percentage gain or loss regardless of time. CAGR annualises that return, making it comparable across investments of different durations. An investment that doubled in 3 years has a 100% absolute return but a 26% CAGR.
When should I use XIRR instead of CAGR?
Use CAGR for a single lump-sum investment. If you made multiple investments at different times (like SIPs), use XIRR instead — it accounts for the timing and size of each cash flow.

This calculator provides estimates for informational purposes only. Actual outcomes may vary based on applicable laws, financial institutions, products and individual circumstances.