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CAGR Calculator India

Calculate CAGR in India from an initial value, final value and investment period. Understand the annualized growth rate of an investment.

CAGR

20.11%

Growth in value

₹1,50,000

Starting value

₹1,00,000

About CAGR Calculator India

CAGR, or Compound Annual Growth Rate, is an annualized rate that connects a beginning value to an ending value over a specified period. It is useful for comparing growth over different time periods, but it does not show the actual ups and downs experienced during the period.

How to use this calculator

  1. Enter the starting value.
  2. Enter the ending value.
  3. Enter the investment period in years.
  4. Review the annualized CAGR percentage.

CAGR calculator example: ₹1 lakh growing to ₹1.5 lakh

If an investment value rises from ₹1,00,000 to ₹1,50,000 over five years, the CAGR is approximately 8.45% per year. This is the constant annualized rate connecting the two values.

CAGR does not show interim gains, losses or volatility and does not account for additional deposits or withdrawals.

Calculation methodology

CAGR is calculated as (ending value / starting value)^(1 / years) − 1. It expresses the constant annualized growth rate that connects the two values.

Formula / calculation model

CAGR = (Ending Value / Starting Value)^(1 / Years) − 1.

Important assumptions and limitations

CAGR does not describe volatility or the path taken between the starting and ending values. It is not the same as an XIRR calculation for cash flows at different dates.

Frequently asked questions

What is CAGR?

CAGR stands for Compound Annual Growth Rate. It represents the constant annualized growth rate that would turn the starting value into the ending value over the selected period.

What is the CAGR formula?

CAGR = (Ending Value / Starting Value)^(1 / Years) − 1.

Does CAGR show year-by-year returns?

No. CAGR summarizes the beginning and ending values into one annualized rate and does not show volatility or the path between them.

Is CAGR the same as XIRR?

No. CAGR is suited to a beginning value and ending value over a period. XIRR is generally used when there are multiple cash flows occurring on different dates.

Disclaimer: Results are estimates for educational and informational purposes. They are not financial, tax, legal or investment advice. Rates, tax rules and product terms can change; verify current applicable rules before making financial decisions.