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CAGR (Compound Annual Growth Rate) Calculator

The CAGR Calculator computes the annualized growth rate of an investment over a multi-year period, smoothing out year-over-year market fluctuations to show the true annual geometric compound return.

₹ 1,00,000
₹ 2,00,000
5 Years

Compound Annual Growth Rate Results

CAGR
0%
Total Wealth Growth
₹0
Absolute Return
0%

How Does the CAGR Calculator Work?

The CAGR Calculator computes the annualized growth rate of an investment over a multi-year period, smoothing out year-over-year market fluctuations to show the true annual geometric compound return.

By inputting your customized parameters into the calculator sliders or numeric input fields above, the tool immediately processes the mathematical formulas in real time to generate interactive visual graphs, principal vs interest splits, and detailed summary tables.

CAGR Formula

CAGR = [(Ending Value / Beginning Value)^(1 / n) - 1] × 100

Variables Explained:

Beginning Value Initial capital or purchase price of the investment
Ending Value Final value or current market price of the investment
n Total number of holding years

CAGR Investment Return Example

An investment that grows from ₹1 Lakh to ₹2.5 Lakhs in 5 years delivers a 150% absolute return, which equals a 20.11% CAGR annual compounding growth rate.

Example Input Parameters:

  • Beginning Investment Value ₹1,00,000
  • Ending Investment Value ₹2,50,000
  • Time Duration 5 Years

Calculated Output Summary:

  • Absolute Return 150.0%
  • Compound Annual Growth Rate (CAGR) 20.11% p.a.

Frequently Asked Questions (FAQs)

Absolute return ignores the time dimension. CAGR provides the standardized annual compounding rate, allowing you to accurately compare investments of differing time horizons.

CAGR assumes a smooth, consistent rate of return every year and does not reflect intermediate volatility, drawdowns, or uneven cash flows (which are better evaluated with XIRR).

Financial Disclaimer

Calculator results are mathematical estimates for informational and educational purposes only. Actual returns, EMI values, tax deductions, and maturity proceeds may vary based on lender policies, market conditions, and regulatory revisions.

Reviewed for compliance with Indian financial standards. Last Updated: August 2026

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