📈 Investment
CAGR Calculator
Calculate the Compound Annual Growth Rate (CAGR) of any investment. CAGR tells you the true annualised return, smoothing out year-to-year volatility.
Investment Details
₹1K₹1 Cr
₹1K₹1 Cr
1 yr50 yrs
CAGR
--%
annualised return
Initial Value--
Final Value--
Absolute Gain--
Absolute Return--
Growth Over Time
Formula
CAGR = (Final Value / Initial Value)1/n − 1
n = Number of years
Expressed as percentage: CAGR × 100
n = Number of years
Expressed as percentage: CAGR × 100
CAGR assumes steady growth year-over-year. It's the most accurate single number to compare different investments over different time periods.
Frequently Asked Questions
CAGR (Compound Annual Growth Rate) is the rate at which an investment grows from its starting value to ending value, assuming profits are reinvested each year. It's the most accurate way to measure and compare investment returns.
Absolute return = (Final-Initial)/Initial × 100. It ignores time. CAGR adjusts for time, making it comparable. A 100% absolute return in 2 years = 41.4% CAGR. The same return in 10 years = only 7.2% CAGR.
Nifty 50: ~12-13% CAGR over 20 years. FD: 6-7%. PPF: 7.1%. Real estate in metros: 8-10%. Inflation: ~5-6%. Any investment with CAGR above inflation is growing your real wealth.