CAGR Calculator
CAGR
–
- Initial value
- Growth
- Initial value
- –
- Final value
- –
- Absolute return
- –
- CAGR
- –
Illustrative estimates only, based on the assumptions you choose. Actual returns, rates and costs will vary.
About the CAGR calculator
The Compound Annual Growth Rate (CAGR) is the steady yearly rate at which an investment would have had to grow to go from its starting value to its ending value.
It is a fairer way to compare investments held for different periods than a simple total return.
How to use it
- Move the sliders, or type a value into each box.
- Watch the results and chart update as you go.
- Try different assumptions to see what changes the outcome most, then talk to us about a plan.
The formula
CAGR = (FV ÷ PV)1 ÷ n − 1
- PV: initial value
- FV: final value
- n: number of years
Example
An investment that grew from ₹1,00,000 to ₹2,50,000 in 5 years has a CAGR of about 20.11%, even though its total return is 150%.
Mutual fund investments are subject to market risks, read all scheme related documents carefully. Past performance is not indicative of future returns.
CAGR Calculator: common questions
Absolute return is the total percentage gain, regardless of time. CAGR spreads that gain evenly over each year, so you can compare investments held for different periods.
No. CAGR smooths out the ups and downs along the way; two investments with the same CAGR can have had very different journeys.
Not directly, because SIP money is invested at different times. For SIPs, XIRR is the right measure; we can calculate it for you.
Want a plan, not just a number?
Book a free financial checkup and we'll turn these estimates into a plan that fits your life.