CAGR Calculator
Calculate Compound Annual Growth Rate (CAGR) for your investments
How CAGR is Calculated:
CAGR = [(Ending Value / Beginning Value)(1 / Number of Years) - 1] × 100
CAGR (Compound Annual Growth Rate) measures the mean annual growth rate of an investment over a specified time period longer than one year. It represents one of the most accurate ways to calculate and determine returns for anything that can rise or fall in value over time.
Example Scenarios:
| Initial Investment | Final Value | Period | CAGR |
|---|---|---|---|
| Rs. 100,000 | Rs. 200,000 | 5 Years | 14.87% |
| Rs. 500,000 | Rs. 1,000,000 | 7 Years | 10.41% |
| Rs. 1,000,000 | Rs. 2,500,000 | 10 Years | 9.60% |
Key Points:
- CAGR smooths returns and assumes consistent growth each year
- Actual returns may vary year to year
- CAGR doesn't account for investment risk or volatility
- Useful for comparing different investments over time
