FINBROOKS • INVESTMENT TOOLS

CAGR Calculator

Calculate the annualized growth rate of your investment using the initial value, final value and investment period.

INPUTS
₹
₹1K ₹1 Cr
₹
₹1K ₹1 Cr
Years
1 Year 40 Years
ⓘ CAGR represents the annualized compounded growth rate required for an investment to grow from its initial value to its final value over the selected period.
CALCULATED RESULT
Compound Annual Growth Rate
7.18%
₹1 Lakh → ₹2 Lakh • 10 years
Initial Investment ₹ 1,00,000
Final Value ₹ 2,00,000
Total Gain ₹ 1,00,000
Absolute Return 100.00%
Growth of your investment
CAGR FORMULA
CAGR = Final Value
─────────────
Initial Value 1 / n − 1

Final Value = Value of investment at the end

Initial Value = Starting value of investment

n = Investment period in years

ASSUMPTIONS
  • Initial and final investment values are known.
  • Investment period is measured in complete years.
  • CAGR represents a constant annualized growth rate for calculation purposes.
  • Actual investment returns can fluctuate over time.
  • Taxes, inflation and investment expenses are not included in this calculation.
YEAR-BY-YEAR GROWTH

Investment Growth by Year

Year Opening Value Estimated Gain Closing Value
Total — ₹ 1,00,000 ₹ 2,00,000

What is a CAGR Calculator?

A CAGR Calculator helps investors calculate the Compound Annual Growth Rate of an investment over a specific period. By entering the initial investment, final value and investment duration, you can determine the annualized rate at which the investment would have grown if the growth had been compounded at a constant rate.

How does a CAGR Calculator work?

The calculator uses the initial investment value, final investment value and number of years to calculate the annualized compounded growth rate. CAGR converts the overall growth during the investment period into an equivalent annual growth rate.

Why use a CAGR Calculator?

  • Measure the annualized growth of an investment.
  • Compare investment performance across different periods.
  • Understand how compounding affects long-term growth.
  • Compare historical returns of different investments.

CAGR vs Absolute Return

Absolute return shows the total percentage gain or loss over the complete investment period. CAGR shows the annualized compounded rate of growth and is therefore useful when comparing investments held for different lengths of time.

Important: CAGR is a mathematical measure of historical or assumed investment growth. It does not mean that the investment actually generated the same return every year. Market-linked investments can experience significant fluctuations.
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