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Performance Metric

CAGR Calculator

Determine the smoothed annual compounding growth rate of your mutual funds, equities, or physical asset investments.

Performance Metric

CAGR Calculator (Compound Annual Growth Rate)

Calculate accurate smoothed annual returns across any investment timeframe

₹₹1,00,000
₹₹5,000₹₹50,00,000
₹₹3,50,000
₹₹5,000₹₹1,50,00,000
7 Years Yr
1 Years Yr30 Years Yr
CAGR (p.a.)

19.6%

Absolute Return

250%

Total Gain

₹2,50,000

Formula & Definition

CAGR = [(Final Value / Initial Value) ^ (1 / n)] − 1

Unlike simple absolute return, CAGR smooths out annual market volatility and tells you the steady geometric progression rate that would take your money from ₹1,00,000 to ₹3,50,000 over 7 years.

CAGR vs Absolute Return: An Important Distinction

If an asset doubles from ₹10 Lakhs to ₹20 Lakhs, the absolute return is 100%. If that doubling occurred in 3 years, the CAGR is an exceptional 26%. However, if it took 12 years to double, the CAGR is only 5.95%—which fails to beat retail inflation! Always evaluate returns using CAGR.

Frequently Asked Questions

CAGR (Compound Annual Growth Rate) represents the constant annual rate of return that would be required for an investment to grow from its beginning balance to its ending balance over a specified number of years. It eliminates intermediate volatility spikes.