CAGR Calculator
Calculate the consistent annual growth rate of your investment over time.
Growth Input Details
Min: ₹10,000•Max: ₹1,00,00,000
Min: ₹10,000•Max: ₹10,00,00,000
Min: 3 Months • Max: 50 Years
CAGR Results
- Total Invested
- Wealth Gain
About CAGR Calculator & Frequently Asked Questions
What is CAGR (Compound Annual Growth Rate)?
CAGR (Compound Annual Growth Rate) represents the annualized geometric growth rate that an investment achieved over a multi-year timeframe. Rather than reporting year-to-year swings, CAGR calculates the smoothed annual rate as if the investment compounded steadily from start to finish. If your investments involve multiple recurring cashflows (such as SIPs or installments), use our XIRR Calculator instead.
Where and Why is it Helping?
- Enables Fair Comparison: Compare returns between stocks, gold, real estate, and fixed deposits on an apples-to-apples basis.
- Smooths Out Volatility: Eliminates short-term market noise to reveal the true underlying annualized growth rate.
- Ideal for Lumpsum Assets: Perfect for one-time investments with a single entry point and exit value.
- Real vs Nominal Returns: To see how much of your CAGR was eroded by rising consumer prices, compare it with our Inflation Calculator.
How to Use the Calculator
- Enter Initial Investment: Input the amount you originally invested.
- Enter Final Value: Input the current market value or the maturity payout.
- Set Duration: Enter the investment period in years/months, or specify the exact start and end dates.
- Get the Rate: The calculator instantly computes the annualized CAGR percentage.
The Formula & Example
- The CAGR formula is: CAGR = [(Final Value / Initial Investment) ^ (1 / n)] - 1, where n is the total number of years the investment was held.
- For example, if you bought mutual fund units for ₹1,00,000 and sold them 5 years later for ₹1,80,000, your absolute return is 80%. Using the CAGR formula, the calculator reveals a compound annual growth rate of 12.47% per year.
- To estimate how quickly an asset growing at this CAGR will double, try our quick Rule of 72 Calculator.
About CAGR Calculator & Frequently Asked Questions
What is CAGR (Compound Annual Growth Rate)?
CAGR (Compound Annual Growth Rate) represents the annualized geometric growth rate that an investment achieved over a multi-year timeframe. Rather than reporting year-to-year swings, CAGR calculates the smoothed annual rate as if the investment compounded steadily from start to finish. If your investments involve multiple recurring cashflows (such as SIPs or installments), use our XIRR Calculator instead.
Where and Why is it Helping?
- Enables Fair Comparison: Compare returns between stocks, gold, real estate, and fixed deposits on an apples-to-apples basis.
- Smooths Out Volatility: Eliminates short-term market noise to reveal the true underlying annualized growth rate.
- Ideal for Lumpsum Assets: Perfect for one-time investments with a single entry point and exit value.
- Real vs Nominal Returns: To see how much of your CAGR was eroded by rising consumer prices, compare it with our Inflation Calculator.
How to Use the Calculator
- Enter Initial Investment: Input the amount you originally invested.
- Enter Final Value: Input the current market value or the maturity payout.
- Set Duration: Enter the investment period in years/months, or specify the exact start and end dates.
- Get the Rate: The calculator instantly computes the annualized CAGR percentage.
The Formula & Example
- The CAGR formula is: CAGR = [(Final Value / Initial Investment) ^ (1 / n)] - 1, where n is the total number of years the investment was held.
- For example, if you bought mutual fund units for ₹1,00,000 and sold them 5 years later for ₹1,80,000, your absolute return is 80%. Using the CAGR formula, the calculator reveals a compound annual growth rate of 12.47% per year.
- To estimate how quickly an asset growing at this CAGR will double, try our quick Rule of 72 Calculator.