Value at the start of the period.
Value at the end of the period.
Years between the two values.
Quick examples
Going from ₹1,00,000 to ₹2,00,000 over 6 years.
What each result means
CAGR
What it is: The steady yearly rate that turns the start value into the end value.
Your value: 12.25%
A smoothed average — real years vary.
Absolute return
What it is: (End − start) ÷ start.
Your value: 100.00%
Total change, ignoring time.
Gain / loss
What it is: End value minus start value.
Your value: ₹1,00,000
In rupees.
Year-by-year breakdown
| Year | Opening (₹) | Growth at CAGR (₹) | Total gain (₹) | Value on CAGR path (₹) |
|---|---|---|---|---|
| 1 | ₹1,00,000 | ₹12,246 | ₹12,246 | ₹1,12,246 |
| 2 | ₹1,12,246 | ₹13,746 | ₹25,992 | ₹1,25,992 |
| 3 | ₹1,25,992 | ₹15,429 | ₹41,421 | ₹1,41,421 |
How to read this: the rows show the smooth path the value would follow if it grew at exactly the CAGR every year. Real year-to-year values differ.
Showing the first 3 of 6 years. Want charts, formulas and the full schedule? Get the detailed PDF.
What this calculator does
CAGR (compound annual growth rate) is the constant yearly rate that would take a starting value to an ending value over a given number of years. It describes past or hypothetical growth; it does not predict future returns.
What your result means
CAGR smooths out ups and downs into one rate. Two investments with the same CAGR can have had very different journeys.
Formula
1. CAGR
Symbols
- n
- Years
Why this formula works
If growth were steady, Starting × (1 + CAGR)ⁿ = Ending; solve for CAGR.
Unit check
Pure ratio (%). ✓
Worked example
₹1,00,000 → ₹2,00,000 in 6 years: 2^(1/6) − 1 ≈ 12.25%.
Common mistakes
Dividing absolute return by years (that is a simple average, not CAGR). Ignoring cash added or withdrawn — use XIRR for that.
Working for your numbers
- Ratio = ₹2,00,000 ÷ ₹1,00,000 = 2.000000
- Ratio^(1/6) = 1.122462
- CAGR = 1.122462 − 1 = 12.2462%
Frequently asked questions
CAGR or XIRR?
CAGR suits one start value and one end value. If money was added or withdrawn at different times, XIRR is the right measure.
Does past CAGR predict future returns?
No. Past growth rates do not guarantee future results.
When should I talk to a professional instead?
Before a real borrowing or investment decision, check the lender's Key Facts Statement or speak to a qualified adviser. This page is educational and does not consider your full situation.
Symbols and assumptions
- Starting
- Initial value (₹)
- Ending
- Final value (₹)
- n
- Years
- No money added or withdrawn during the period.
- Growth is treated as a steady yearly rate.
- Does not account for income tax, TDS, fees or inflation.
Sources and review
Reviewed 2026-09-29 · Next review 2027-09-29
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How it works
Compound Annual Growth Rate (CAGR) measures the mean annual growth rate of an investment over a specified period longer than one year.
The formula
CAGR = [(End Value / Start Value)^(1/n)] - 1- EV
- Ending Value
- SV
- Starting Value
- n
- Number of Years
Worked example
₹1L becoming ₹2L in 5 years is a CAGR of ~14.87%.
Pro tips
- Best for comparing performance of two different assets.
Common mistakes
- Ignoring volatility during the period.
Go deeper
Related lessons
Concepts to explore
Related guides
Institutional grade calculations are illustrative and for educational wealth architecture. Results do not constitute investment advice.