AMFI Registered MFD · ARN-130934 · Mutual fund investments are subject to market risks. CA Amit Kumar Jain · +91 93522 44475 Poornima Jain · +91 92525 44475 support@plenitude.co.in हिंदी

CAGR calculator: the yearly growth rate of an investment.

Compound Annual Growth Rate (CAGR) is the steady yearly rate that would take an investment from its starting value to its ending value. It is the standard way to compare returns over different periods.

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₹10K₹1Cr
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₹10K₹10Cr
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1 yr40 yrs
CAGR₹0
Absolute return₹0
Total gain₹0
Value at this CAGRInitial value

CAGR is the steady yearly growth rate that turns your starting value into the final value. Use it to compare any two investments fairly.

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How it is calculated

CAGR = (Ending value ÷ Starting value)1 ÷ years − 1

Example: ₹1 lakh growing to ₹2 lakh in 6 years is a CAGR of about 12.2% a year. CAGR smooths out the ups and downs, so it does not show how bumpy the ride was.

Common questions

CAGR vs absolute return?
Absolute return is the total gain (100% in the example). CAGR spreads it over the years, so it is fairer when comparing different periods.
What about SIPs?
SIPs have money going in at different times, so XIRR is used instead of CAGR to measure their return.
Does a high past CAGR mean high future returns?
No. Past performance may or may not be sustained in future.
Mutual fund investments are subject to market risks; read all scheme-related documents carefully. Returns shown are illustrations at an assumed rate and are not guaranteed. Plenitude Connect is an AMFI-registered Mutual Fund Distributor (ARN-130934); these tools are for education and are not investment advice.
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