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CAGR Calculator

Last updated: August 2026

Calculate the Compound Annual Growth Rate (CAGR) of an investment over a specific period of time.

Your Details

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Yrs

Return Breakdown

Initial Investment ₹0
Final Value ₹0
Profit ₹0
Absolute Return 0%
CAGR 0%

Growth Trajectory

Growth Insights

Total Wealth Created

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Growth Multiple

0x

Average Annual CAGR

0%

Year-by-Year Growth

Year Value Gain

Disclaimer: This calculator is provided for informational and educational purposes only. It computes the mathematical Compound Annual Growth Rate based on your inputs and does not represent a guarantee of future returns. Actual investments are subject to market risks, taxes, fees, and volatility not accounted for in this simple calculation. Always consult a certified financial planner before making investment decisions.

What’s Next?

If you’re concerned about the long-term impact of INR depreciation, these guides can help you diversify globally and make informed investment decisions.

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Frequently Asked Questions

The Compound Annual Growth Rate (CAGR) measures the mean annual growth rate of an investment over a specified time period longer than one year. It smooths out volatility and gives you a single, steady rate of return, representing what your investment would have grown by if it grew at a consistent rate every year.

The formula to calculate CAGR is:

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

Suppose you invested 100,000 and it grew to 250,000 over 5 years. Using the formula:

CAGR = (250,000 / 100,000)(1 / 5) - 1

CAGR = (2.5)0.2 - 1

CAGR = 1.2011 - 1 = 0.2011 or 20.11%

Absolute return measures the total percentage growth from start to finish, ignoring how long it took. If an investment doubles, its absolute return is 100%. However, CAGR accounts for time. Doubling in 1 year is a 100% CAGR, but doubling in 10 years is roughly a 7.18% CAGR.

CAGR works best for a single, lump-sum investment with no intermediate cash flows. If you are making multiple investments (like SIPs) or withdrawing money over time, XIRR (Extended Internal Rate of Return) is a more accurate measure as it accounts for the exact dates of each cash flow.

CAGR assumes a smooth, steady growth rate, which rarely happens in reality. It masks the volatility of an investment. An investment could drop 50% one year and gain 100% the next; the CAGR might look fine, but the investor experienced significant risk. Always consider CAGR alongside risk metrics or yearly returns.