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CAGR Calculator
Calculate Compound Annual Growth Rate and analyze investment returns over time
CAGR
14.87%
Annual growth rate
Total Growth
₹1,00,000
Absolute gain
Absolute Return
100.00%
Total return
Investment Period
5
Years
₹
₹
CAGR Formula
CAGR = (FV/PV)^(1/n) - 1
Where:
- • FV = Final Value (₹2,00,000)
- • PV = Present Value (₹1,00,000)
- • n = Number of years (5)
Investment Analysis
Risk Level: Medium
Asset Class: Equity/Growth
Doubling Time: 4.84 years
Value after 10 years: ₹4,00,000
Performance Metrics
Annualized Return: 14.87%
Total Return: 100.00%
Multiple of Investment: 2x
Annual Growth Rate: 14.87%
Inflation Analysis
Nominal CAGR: 14.87%
Assuming 6% inflation: 8.87%
Real Value (inflation adj.): ₹1,52,946
Purchasing Power: Increased
Investment Comparison
Fixed Deposit
6.50%
₹1,37,009
PPF
7.10%
₹1,40,912
Equity Mutual Funds
12.00%
₹1,76,234
Large Cap Funds
10.00%
₹1,61,051
Small Cap Funds
15.00%
₹2,01,136
Gold
8.00%
₹1,46,933
Real Estate
9.00%
₹1,53,862
CAGR Benchmarks
Conservative (FD/PPF): 6-8%
Moderate (Balanced Funds): 8-12%
Aggressive (Equity Funds): 12-15%
High Growth (Small Cap): 15%+
Your CAGR (14.87%): Medium risk category
Year-by-Year Growth Projections
| Year | Start Value | Growth | End Value | Cumulative Return |
|---|---|---|---|---|
| 1 | ₹1,00,000 | ₹14,870 | ₹1,14,870 | 14.87% |
| 2 | ₹1,14,870 | ₹17,081 | ₹1,31,951 | 31.95% |
| 3 | ₹1,31,951 | ₹19,621 | ₹1,51,572 | 51.57% |
| 4 | ₹1,51,572 | ₹22,538 | ₹1,74,110 | 74.11% |
| 5 | ₹1,74,110 | ₹25,890 | ₹2,00,000 | 100.00% |
Understanding CAGR
What is CAGR?
- • Compound Annual Growth Rate measures investment returns
- • Smoothens out volatility to show steady growth rate
- • Assumes returns are reinvested each year
- • Better than average returns for comparison
- • Standard metric in financial analysis
CAGR vs Other Metrics
- • CAGR: Geometric mean of returns
- • Absolute Return: Total return percentage
- • Average Return: Arithmetic mean (can be misleading)
- • IRR: Internal Rate of Return (for cash flows)
- • XIRR: IRR for irregular cash flows
Uses of CAGR
- • Compare investment performance
- • Benchmark against market indices
- • Project future investment values
- • Evaluate business growth rates
- • Set realistic financial goals
Limitations
- • Assumes steady growth (reality is volatile)
- • Doesn't show year-to-year variations
- • Past performance doesn't guarantee future returns
- • Doesn't account for risk or volatility
- • Should be used with other metrics