Calculate Compound Annual Growth Rate to compare investments fairly. CAGR shows the annualized growth rate over a period.
Total Return
0%
CAGR (Annualized)
0%
Absolute Gain/Loss
₹0
Compound Annual Growth Rate (CAGR) is the annual growth rate of an investment over a specified period of time, assuming the profits are reinvested at the end of each period.
CAGR = [(Ending Value / Starting Value)^(1/n)] - 1
Where n = number of years
CAGR smooths out volatility and provides a single annual growth rate, making it easier to compare different investments over different time periods.
The Compound Annual Growth Rate (CAGR) measures the smoothed annualized yield of an investment. It ignores volatility and assumes steady growth over the period.
CAGR is the most accurate way to compare different investments across different timeframes.
The Myth
"Average annual return is the same as CAGR."
The Fact
Average return ignores the geometric realities of compounding. If you lose 50% one year and gain 50% the next, your average is 0%, but your actual CAGR is deeply negative.
Yes, this CAGR Calculator uses standard financial algorithms to provide highly accurate long-term projections. However, always consult with a certified financial planner before making major investment decisions.
Small, consistent adjustments to your principal or compounding frequency often yield exponentially better results over time. Use this tool to model different scenarios.
This calculator provides the pure mathematical output. You must manually account for taxes, inflation, and platform fees depending on your specific financial institution.