CAGR Calculator
Calculate the compound annual growth rate (CAGR) and absolute return between an initial and final investment value.
Result
What is CAGR Calculator?
Compound Annual Growth Rate (CAGR) is the single most important metric for evaluating the smoothed annual growth rate of an investment over multiple years. While absolute return simply measures the total percentage gain or loss irrespective of time, CAGR accounts for the compounding effect over the exact holding tenure, allowing you to fairly compare mutual funds, stocks, real estate, gold, and fixed deposits. This calculator takes your beginning investment value, ending value, and tenure in years, instantly delivering both the annualized CAGR percentage and the total absolute return percentage.
How to use CAGR Calculator
- 1Enter the initial investment amount (beginning value) in rupees (₹).
- 2Enter the final maturity or current market value in rupees (₹).
- 3Enter the investment duration in years (e.g., 5 or 3.5).
- 4Instantly view the annualized CAGR (%) and the overall absolute return (%).
Key features
Geometric Compounding CAGR
Computes smoothed annual growth rate: CAGR = ((Final / Initial)^(1/t) - 1) × 100.
Point-to-Point Absolute Return
Computes total unannualized percentage gain: ((Final - Initial) / Initial) × 100.
Fractional & Decimal Tenures
Supports exact partial holding periods such as 2.5 years, 3.2 years, or 18 months.
Capital Losses & Break-Even Analysis
Handles negative returns and flat performance with mathematically sound negative CAGR outputs.
Annualized vs Total Gain Perspective
Clarifies the dramatic difference between nominal lump-sum gains and true annual compounding.
Examples & use cases
Mutual Fund Growth (₹1,00,000 to ₹2,00,000 in 5 Years)
Doubling your money in 5 years represents an absolute gain of 100%, which translates to a CAGR of 14.87% per annum.
Real Estate Investment (₹40,00,000 to ₹85,00,000 in 7 Years)
An increase from ₹40 Lakh to ₹85 Lakh over 7 years yields an absolute return of 112.50% and a CAGR of 11.37%.
Stock Investment Loss (₹1,00,000 to ₹75,000 in 3 Years)
A drop from ₹1,00,000 to ₹75,000 over 3 years yields an absolute return of -25.00% and a negative CAGR of -9.14% per annum.
Frequently asked questions
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