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Wealth & Planning

CAGR Calculator

Calculate Compound Annual Growth Rate for mutual funds, real estate, and portfolio assets.

  • Runs entirely in your browser
  • No sign-up, nothing stored
  • Formula explained below

Investment details

Mutual funds, stocks, property or a business — any start and end value.

₹
₹5K₹10L
₹
₹5K₹30L
yrs
1 yrs30 yrs
Compound annual growth rate (CAGR)
28.47%

₹1,00,000 grew to ₹3,50,000 over 5 years — the same as a steady 28.47% every year.

Initial investment
₹1,00,000
Absolute returns
+₹2,50,000
Total return
250.00%
  • Initial capital29%
  • Absolute profit71%

Implied growth path

What ₹1,00,000 would be worth each year if it grew at exactly 28.47% a year.

  • Initial investment
  • Growth
A 250.00% total return is 28.47% a year, not 50.00%
Dividing the total return by the number of years overstates the yearly rate, because each year's growth builds on the gains before it. CAGR is the one steady rate that compounds to the same final value.
Value multiple
3.50×
Final value ÷ initial investment
Doubles every
2.8 yrs
If growth continued at 28.47%
Average gain a year
₹50,000
Absolute returns ÷ years, not compounded
Gain in final year
₹77,570
vs. ₹28,474 in year 1

Gain added each year

At a steady 28.47%, each year's gain is larger than the last because it compounds on a bigger base.

Total return vs. CAGR

Three ways to describe the same result. Only CAGR accounts for compounding.

How CAGR is calculated

CAGR is the steady yearly rate that would turn your initial investment into its final value over the same period. It lets you compare investments held for different lengths of time on equal terms.

CAGR = [ (EV ÷ BV)^(1 ÷ n) − 1 ] × 100
EV
Ending (final) value of the investment
BV
Beginning value — the amount initially invested
n
Number of years the investment was held
How is CAGR different from absolute return?
Absolute return is the total percentage gain over the whole period. CAGR spreads that gain into an equal yearly rate that compounds, so a 250% return over five years is about 28.5% a year — not 50%.
Does CAGR show how bumpy the ride was?
No. CAGR smooths the journey into one steady rate. The actual investment may have risen and fallen sharply along the way; two investments with the same CAGR can carry very different risk.
Can I use CAGR for SIPs?
Not directly. CAGR assumes one investment at the start. When money goes in or comes out at different times, as with a SIP, XIRR is the better measure of the annual return.

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