CAGR Calculator
Calculate the Compound Annual Growth Rate (CAGR) of your investments.
Growth Parameters
₹1,00,000
₹10k₹1Cr
₹2,50,000
₹10k₹5Cr
5 Years
1 Yr30 Yrs
Performance Summary
Absolute Return
₹1,50,000
Absolute Percentage Yield
150%
Compound Annual Growth Rate
20.11%
Theoretical Compounding Trajectory
Theoretical Year-by-Year Growth
This table assumes your portfolio compounded strictly at the calculated CAGR of 20.11% every year.
| Year | Portfolio Value |
|---|---|
| Initial (Year 0) | ₹1,00,000 |
| Year 1 | ₹1,20,110 |
| Year 2 | ₹1,44,264 |
| Year 3 | ₹1,73,276 |
| Year 4 | ₹2,08,121 |
| Year 5 | ₹2,49,975 |
What is CAGR?
Compound Annual Growth Rate (CAGR) is the accurate measure of an investment's annual growth rate over time, with the effect of compounding taken into account. It smooths out the volatility of varying annual returns, providing a single, steady percentage figure that represents how much the investment grew each year on average.
Why is CAGR superior to Absolute Return?
- Accounts for Time: Absolute return only measures point A to point B without factoring in how long it took. A 50% absolute return over 10 years is very different from 50% over 1 year. CAGR adjusts for duration.
- Apples-to-Apples Comparison: CAGR allows you to easily compare the performance of different investments (like real estate vs. mutual funds) over different time periods.
- Factors in Compounding: It measures the growth of not just the principal, but also the prior years' accumulated returns.