CAGR Calculator
Calculate the Compound Annual Growth Rate (CAGR) to measure your investment's annual growth over time.
₹
₹
Yr
Total Profit
₹2,00,000
Your CAGR
24.57%
per annum
Initial investment
₹1,00,000
Total profit
₹2,00,000
Final value
₹3,00,000
What is CAGR?
CAGR (Compound Annual Growth Rate) is a useful measure that tells you the smoothed annual rate of return on an investment over a given time period. It assumes that the investment grows at a steady rate compounded annually.
Unlike absolute returns, CAGR accounts for the time value of money and gives you a single annualized growth rate, making it easier to compare different investments across different time horizons.
CAGR is widely used to evaluate mutual fund performance, stock returns, business revenue growth, and more.
How is CAGR calculated?
- CAGR = ((Final Value / Initial Value) ^ (1 / Number of Years)) - 1
- It represents the rate at which an investment would have grown if it grew at a steady rate.
- CAGR eliminates the effect of volatility and gives a clearer picture of growth.
- It helps compare the performance of different investments over the same or different periods.