CAGR calculator

Default result

Growing from ₹1.00 L to ₹2.50 L over 5 years is a CAGR of 20.11% a year (150.0% in total).

Year-wise table

Computed from the same engine as the calculator above, using the default inputs. Figures are illustrations, not guarantees.

How to use this calculator

1. Enter the starting value of the investment.
2. Enter the ending value and the number of years between them.
3. Read CAGR, absolute return and the year-wise growth path at that CAGR.

Formula and worked example

CAGR = (final value ÷ initial value)^(1 ÷ years) − 1. It ignores interim volatility and cash flows, for a portfolio with additions and withdrawals, XIRR is the right measure.

CAGR = (final ÷ initial)^(1 ÷ years) − 1
Absolute return = final ÷ initial − 1

Worked example. ₹1,00,000 → ₹2,50,000 over 5 years → CAGR 20.11%, absolute return 150%.

Examples

Common Indian retail queries. Outputs are generated from lib/finance.js at build time.

Assumptions and limits

• A single amount in and a single amount out.
• Ignores interim volatility and any cash flows. For a SIP or a portfolio with additions and withdrawals, XIRR is the right measure.
• Single amount in and single amount out.
• Ignores interim cash flows; use XIRR for SIPs.
• Does not annualise periods shorter than the years you enter.

Results are illustrations. Actual outcomes depend on markets, interest rates, taxes and charges, none of which are guaranteed.

CAGR calculator for mutual funds

Mutual fund pitch decks love CAGR because it smooths a bumpy NAV path into one annualised number. Enter start value, end value and years. Growing ₹1 lakh to ₹2.5 lakh in 5 years is a 20.11244339814313% CAGR with 150% absolute return. That does not mean the fund earned 20.11244339814313% every single year. Use CAGR to compare completed holding periods, not to promise the next five years. Write the cagr inputs you trust into your annual review note so next year’s rerun of “CAGR calculator for mutual funds” starts from recorded figures.

CAGR vs absolute return

Absolute return asks how much you made in total; CAGR asks what constant yearly rate matches that journey. The sample 150% absolute gain over 5 years equals a 20.11244339814313% CAGR. Short periods with huge absolute gains can show modest CAGR, and long periods can hide painful mid-course drawdowns. When a brochure shows only absolute return, compute CAGR yourself before comparing funds with different ages. When household opinions differ on risk for cagr under “CAGR vs absolute return”, fund the more conservative case first and treat any extra debit as optional top-ups.

CAGR formula

CAGR = (End / Start)^(1 / years) − 1. On ₹1 lakh → ₹2.5 lakh over 5 years that solves to 20.11244339814313%. The page also shows absolute return for context. Do not annualise a three-month rally with this formula and call it a yearly expectation. For irregular deposits, switch to the XIRR calculator instead of forcing a CAGR. If the cagr instalment for “CAGR formula” looks unaffordable, cut the target or add years before you inflate the assumed return unrealistically.

Lumpsum CAGR calculator

Lumpsum CAGR fits one buy and one sell (or current value). It is the right lens for a one-time investment you held untouched. The defaults illustrate 20.11244339814313% annualised. If you added SIP instalments, CAGR on “total invested versus current value” misstates performance—XIRR is correct. Use this page when the cash-flow story is truly a single lumpsum. After you accept the “Lumpsum CAGR calculator” maths, update nominees and the bank mandate—process gaps undo an otherwise sound cagr plan. Recalculate the “Lumpsum CAGR calculator” path after a job change, new loan or family addition rather than relying on last year’s cagr screenshot.

Frequently asked questions