SolveItByTechCalculators

CAGR Calculator

Calculate the Compound Annual Growth Rate of your investments across multi-year periods

1,000 1,00,00,000
1,000 2,00,00,000
Years
Calculation Result
CAGR (Annual Growth Rate)
24.57%
Absolute Return
200%
Total Net Gain
₹1,00,000

How this calculator works

1

Enter the initial beginning value of your portfolio or asset.

2

Enter the current or ending value.

3

Input the total number of years elapsed.

Formula & Mathematics

Compound Annual Growth Rate Formula
CAGR = (Ending Value / Beginning Value)¹/ⁿ - 1

Provides the smoothed annualized rate of return across n years, eliminating volatility noise.

Worked Example

₹50,000 growing to ₹1,50,000 in 7 Years

BV = ₹50,000, EV = ₹1,50,000, n = 7 years.

CAGR = (150000 / 50000)^(1/7) - 1 = (3)^0.142857 - 1 = 16.99%
Absolute Return = (150000 - 50000) / 50000 = 200%
Your compounded annualized growth rate is 16.99% per year.

Frequently Asked Questions

Absolute return only measures total percentage gain regardless of time, while CAGR accounts for how long it took to achieve that gain on an annualized basis.

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