CAGR Calculator
Calculate the true annualized growth rate (CAGR), absolute return percentage, and capital multiple of any investment portfolio across multi-year holding periods.
Adjust Parameters
The purchase price or original capital invested.
Current portfolio value or maturity redemption payout.
Number of full years between beginning and ending value.
Smoothed annual rate over 5 Years (60 Months)
2x original capital invested
Net wealth creation
Initial ₹1,00,000 → ₹2,00,000
Breakdown
Total: ₹2,00,000| Category | Amount | Percentage |
|---|---|---|
| Initial Capital | ₹1,00,000 | 50.0% |
| Total Wealth Gain | ₹1,00,000 | 50.0% |
Annual Compounding Trajectory (14.87%% CAGR)
Yearly progression required to grow from ₹1,00,000 to ₹2,00,000
| Milestone | Projected Value | Cumulative Gain | Gain as % of Initial |
|---|---|---|---|
| Start (Year 0) | ₹1,00,000 | ₹0 | 0.0% |
| End of Year 1 | ₹1,14,870 | +₹14,870 | 14.87%% |
| End of Year 2 | ₹1,31,951 | +₹31,951 | 31.95%% |
| End of Year 3 | ₹1,51,572 | +₹51,572 | 51.57%% |
| End of Year 4 | ₹1,74,110 | +₹74,110 | 74.11%% |
| End of Year 5 | ₹2,00,000 | +₹1,00,000 | 100%% |
How Compound Annual Growth Rate (CAGR) is Calculated
Transparent mathematical formulas and assumptions used across our financial engines.
Variables & Legend
Conventions & Assumptions
- CAGR is the single constant rate of return at which an investment would have grown if it had compounded steadily each year.
- CAGR is the most accurate benchmark for comparing investments with volatile year-to-year returns (e.g. mutual funds, stocks, real estate).
- Unlike simple average returns, CAGR accounts for compounding and avoids the mathematical distortions created by volatile market swings.
- For multiple cash inflows/outflows across different dates (like ongoing SIPs), XIRR (Extended Internal Rate of Return) must be used instead of CAGR.
Frequently Asked Questions
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