CAGR Calculator (Compound Annual Growth Rate)
Calculate the true annual growth rate of your investments over time.
Loading growth chart...
Measure the True Velocity of Your Wealth
Don't let absolute percentages fool you. A 200% gain is meaningless if it took 30 years to achieve. Use this Compound Annual Growth Rate (CAGR) engine to distill your exact, annualized geometric return.
Did you know that the exact mathematical formula used to calculate CAGR is the same formula economists use to calculate long-term inflation? If your portfolio's CAGR is 6%, and India's historical inflation CAGR is also 6%, your real wealth growth is mathematically zero. Your CAGR must aggressively outpace inflation to build actual purchasing power.
What Exactly is CAGR?
Think of CAGR as the "average speed" of your money. If you drive a car through traffic, your speed fluctuates wildly—sometimes you go 100 km/h, sometimes you are stopped at 0 km/h. But at the end of the trip, your average speed was a steady 40 km/h.
The stock market works the same way. Your portfolio might jump 30% one year and crash 15% the next. CAGR calculates the single, smoothed-out geometric rate at which your initial investment would have had to grow every single year to reach your final balance.
This calculator uses fractional exponents to compute geometric progressions, avoiding the inaccuracies of simple arithmetic averages.
Where:
n = Total number of years the capital remained invested.
The Investor's Lie Detector
Learn how brokers and relationship managers use "Absolute Returns" to sell you mediocre assets, and discover exactly why CAGR mathematically breaks down if you are running an SIP.
Read the CAGR Master GuideFrequently Asked Questions
Can I use this calculator for my Mutual Fund SIPs?
No. CAGR only works for a single, lump-sum investment. If you are investing money every month, every single deposit has a different time horizon. You must use our XIRR Calculator to measure staggered cash flows.
What happens if my investment period is less than a year?
CAGR "annualizes" returns. If you make a 10% profit in just 6 months, the formula projects that trajectory forward and will display a much higher annualized rate (over 20%). It is generally not recommended to use CAGR for trades held less than 365 days.
Does CAGR show me how risky the investment was?
No. CAGR entirely masks volatility. A portfolio that grows exactly 10% every year and a portfolio that crashes 40% before skyrocketing 100% can have the exact same CAGR. It shows the destination, but hides the turbulence of the journey.
Actuarial & System Assumptions
This simulation engine is provided for illustrative, educational, and strategic planning purposes only. It does not constitute a financial contract, legal guarantee, or fiduciary advice.
Calculations rely on deterministic inputs and compounded mathematical growth models. Real-world inflation, sequence of returns, market volatility, and asset degradation will cause actual results to deviate.
Tax brackets, government subsidies (e.g., PM Surya Ghar), and statutory interest rates are subject to continuous legislative amendments. This engine does not guarantee real-time legal compliance.
Rupee Logics is a mathematical simulator, not a SEBI-registered entity. Users are strictly advised to verify all capital allocations and liability assumptions with certified financial professionals.