CAGR Calculator

Calculate the annualised compounded rate of return between two points in time.

₹

Value at the beginning of the period

₹

Value at the end of the period

Years

Number of years between start and end

How CAGR Works

CAGR smooths out intermediate fluctuations to provide a single annual rate that would have grown the initial value to the final value.

Results

Compound Annual Growth Rate
20.11%

At this rate, your money doubles every ~3.8 years

Initial Investment₹1,00,000
Final Value₹2,50,000
Absolute Gain₹1,50,000
Total Absolute Return150.0%
Growth Multiple2.50x

For information only. Not financial advice. Results are estimates.

How this calculator works

The Compound Annual Growth Rate (CAGR) is computed by taking the nth root of total return over n years:

CAGR = (FV / PV)^(1 / n) − 1

  • FV — Final value of the investment
  • PV — Initial present value of the investment
  • n — Number of years

Worked Example

Suppose you invested ₹1,00,000 and after 5 years your portfolio reached ₹2,50,000:

CAGR = (2,50,000 / 1,00,000)^(1 / 5) − 1 = (2.5)^(0.2) − 1 ≈ 0.2011 (20.11%)

Total absolute gain is ₹1,50,000 (+150.0%), representing a 2.50x growth multiple over the 5-year investment duration.

Measuring monthly SIPs or multiple cash flows? CAGR only works for one-time lump-sum investments. To understand why SIP returns require a different formula, read our guide on CAGR vs. XIRR or use the XIRR Calculator.

Frequently asked questions

What is CAGR and when should I use it?
CAGR (Compound Annual Growth Rate) represents the annualized constant return rate required for an investment to grow from its initial value to its final value over a given period, smoothing out year-over-year market fluctuations.
What is the formula for CAGR?
The formula is CAGR = (Ending Value / Beginning Value)^(1 / Years) − 1. The result is multiplied by 100 to express it as an annual percentage.
Can CAGR be negative?
Yes. If the final value is less than the beginning value, the investment suffered a loss, resulting in a negative CAGR reflecting the annualized rate of loss.

CAGR

20.11%

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