CAGR Calculator

Find the annualized growth rate of your investment.

Initial Investment ValueRs. 1,00,000
Final Output ValueRs. 5,00,000
Duration / Time Period5 Years
Initial ValueRs. 1,00,000
Final ValueRs. 5,00,000
Absolute Return400.00%
CAGR37.97% p.a.

Value Breakdown

Initial Investment
Profit Made

What is CAGR?

Compound Annual Growth Rate (CAGR) provides a smoothed annualized rate of return for an investment over a specified period. Unlike absolute returns, CAGR accounts for compounding, making it the most accurate way to compare past performance of investments.

The Mathematical Formula

CAGR = [(Final Value / Initial Value) ^ (1 / Number of Years)] - 1

Disclaimer:CAGR indicates a smoothed average growth rate. It does not reflect market volatility that might have occurred between dates.

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Frequently Asked Questions — CAGR Calculator

What is CAGR and why is it important?

CAGR (Compound Annual Growth Rate) represents the smoothed annual rate of return an investment would have grown at if it had grown steadily. It's the best metric to compare investments across different time periods.

How is CAGR different from absolute returns?

Absolute return shows total percentage gain/loss without considering time. CAGR normalizes returns to an annual rate, making it possible to compare investments held for different durations fairly.

What is a good CAGR for investments?

A CAGR of 12-15% is considered excellent for equity investments in India. FDs typically deliver 6-7% CAGR, while gold delivers around 8-10% CAGR over long periods.

Can CAGR be negative?

Yes, CAGR can be negative if the final value of your investment is less than the initial value, indicating that you lost money on the investment over the given period.