What is CAGR and how is it calculated?

CAGR stands for Compound Annual Growth Rate. It represents the mean annual growth rate of an investment over a specified period longer than one year, assuming profits are reinvested. Formula: CAGR = (Ending Value / Beginning Value)^(1 / Years) - 1.

What is the difference between CAGR and Absolute Return?

Absolute return only measures the total percentage gain or loss regardless of time. CAGR annualizes the return to show the steady compound rate per year, making it possible to compare investments of differing durations.

Point-to-Point Compounding Formula

CAGR Calculator (Compound Annual Growth Rate)

Calculate the annualized compound return of any stock, mutual fund, real estate, or gold investment over any time horizon.

Investment Values & Horizon

Initial Investment (Beginning Value) (₹)₹1,00,000

Final Investment (Ending Value) (₹)₹2,50,000

Time Horizon (Years)5 Years

Mathematical Formula:CAGR = (Ending Value / Beginning Value)^(1 / Years) - 1

Compound Annual Growth Rate (CAGR)

20.11% p.a.

Annualized compound rate required to grow ₹1,00,000 to ₹2,50,000.

Absolute Return+150%Total percentage gain

Wealth Multiplier2.5xCapital expanded

Net Wealth Gain:+₹1,50,000

Tenure:5 Years

Historical Benchmark

Compare Your CAGR to 30 Years of Nifty 50 Data

See empirical 5, 10, 15, and 20-year rolling returns of the Indian stock market.

Historical Returns

SEBI Compliance: Past CAGR performance is not indicative of future results. CAGR smooths out annual volatility and does not reflect intra-period market swings or drawdown risk.