About the CAGR Calculator
CAGR (compound annual growth rate) is the steady yearly rate at which an investment would have grown from its starting value to its ending value. This calculator also shows the absolute return and the rupee gain.
How to use this calculator
- Enter the starting value of the investment.
- Enter its value at the end.
- Enter the number of years in between.
- Read the CAGR and the year-by-year path at that rate.
Formula
CAGR = (Final value ÷ Initial value)^(1 ÷ years) − 1. Absolute return = (Final ÷ Initial − 1) × 100.
Example
An investment that grew from ₹1,00,000 to ₹2,50,000 in 5 years has an absolute return of 150% and a CAGR of about 20.11% a year.
Frequently asked questions
What is the difference between CAGR and absolute return?
Absolute return is the total growth over the whole period. CAGR spreads that growth into an equal yearly rate, which makes investments held for different periods easier to compare.
When should I use XIRR instead of CAGR?
CAGR suits a single investment with one start and one end value. If you invested in several instalments, such as a SIP, XIRR is the more accurate measure.
Does CAGR show how volatile the returns were?
No. Two investments with the same CAGR can have had very different ups and downs along the way.
These results are estimates for illustration and education only, not investment advice.