CAGR Calculator
Calculate Compound Annual Growth Rate for your investments. Compare returns across different asset classes.
Calculate CAGR
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CAGR Formula: CAGR = (Final Value / Initial Value)^(1/n) - 1
Where n = number of years. CAGR shows the smoothed annual rate of return.
Where n = number of years. CAGR shows the smoothed annual rate of return.
Growth Visualization
Y0
Y1
Y2
Y3
Y4
Y5
Results
24.57%CAGR
Initial Investment₹1.00 L
Final Value₹3.00 L
Total Growth₹2.00 L
Growth Percentage200.00%
24.57%
CAGR
5 Years
Time Period
200%
Total Growth
40.0x
Money Multiplier
Compare with Benchmarks
NIFTY 50 (10Y)
12.5%
✓ Beating
Bank FD
6.5%
✓ Beating
Gold (10Y)
9.5%
✓ Beating
PPF
7.1%
✓ Beating
Inflation
5.5%
✓ Beating
Year-wise Growth Table
| Year | Investment Value | Growth from Start |
|---|---|---|
| Year 0 | ₹1.00 L | - |
| Year 1 | ₹1.25 L | +₹24.57 K (24.6%) |
| Year 2 | ₹1.55 L | +₹55.19 K (55.2%) |
| Year 3 | ₹1.93 L | +₹93.32 K (93.3%) |
| Year 4 | ₹2.41 L | +₹1.41 L (140.8%) |
| Year 5 | ₹3.00 L | +₹2.00 L (200.0%) |
Frequently Asked Questions
Understanding CAGR
Compound Annual Growth Rate (CAGR) is the rate of return that would be required for an investment to grow from its beginning balance to its ending balance, assuming profits were reinvested at the end of each period.
Why Use CAGR?
- Smooth Returns: Shows average growth ignoring volatility
- Compare Investments: Easy to compare different asset classes
- Historical Analysis: Evaluate past performance of stocks, funds
- Future Projections: Estimate future value with expected growth
CAGR vs Absolute Returns
- CAGR: Annualized growth rate, accounts for compounding
- Absolute Return: Total percentage gain/loss over entire period
- CAGR is more useful for comparing investments of different durations