CAGR Calculator
Find the steady yearly growth rate that takes an investment from its starting value to its ending value over a period.
Frequently asked questions
What is CAGR?
CAGR (Compound Annual Growth Rate) is the constant yearly rate at which an investment would have to grow, with returns reinvested, to go from its starting value to its ending value over the period.
How is CAGR calculated?
CAGR = (final value ÷ initial value)1 / years − 1. For example, ₹1,00,000 growing to ₹2,50,000 in 5 years is a CAGR of about 20.11%.
How is CAGR different from absolute return?
Absolute return is the total percentage gain, whatever the period. CAGR spreads that gain evenly across the years, so investments held for different periods can be compared fairly.
Does CAGR show how an investment actually behaved?
No. CAGR smooths out the ups and downs in between. An investment with a good CAGR may still have had large falls along the way.
Disclaimer: This calculator is for illustration only. The results are estimates based on the rate of return you enter and do not indicate, promise or guarantee future returns. Actual returns vary with market conditions and are not guaranteed.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance is not indicative of future returns. Please consult your financial advisor before investing.