CAGR Calculator
CAGR — Compound Annual Growth Rate — is the single yearly rate that turns your starting value into your ending value. It’s the honest way to compare returns over different periods. Add inflation to see the real rate too. Everything runs in your browser.
Educational maths on your own numbers. Past growth does not predict future returns — this is not advice, a recommendation or a forecast.
CAGR vs. absolute return
If ₹1 lakh becomes ₹2 lakh, the absolute return is 100% — but that means very different things over 2 years versus 10. CAGR squeezes the whole journey into one annual rate, so you can compare a fixed deposit, a fund and a stock on the same footing. The inflation-adjusted version shows how much your money actually grew in purchasing power.
CAGR — frequently asked questions
What is CAGR?
CAGR (Compound Annual Growth Rate) is the constant annual rate at which an investment would have to grow, compounded each year, to go from its starting value to its ending value over a given period. The formula is (Final ÷ Initial) ^ (1 ÷ years) − 1.
How is CAGR different from absolute return?
Absolute return is the total percentage change, ignoring time — ₹1 lakh to ₹2 lakh is 100% whether it took 2 years or 10. CAGR accounts for the number of years, giving a per-year rate that lets you compare investments held for different periods.
What is inflation-adjusted (real) CAGR?
Real CAGR removes the effect of inflation so you see the growth in actual buying power. It is roughly (1 + CAGR) ÷ (1 + inflation) − 1. A 12% CAGR with 6% inflation is only about a 5.7% real return.