IFSCIndex

CAGR Calculator

Total Profit

₹1,01,136

Absolute Return

101.14%

CAGR

15.00%

Adjust Parameters

₹
₹1,000₹1,00,00,000
₹
₹1,000₹5,00,00,000
Yrs
1 Yrs40 Yrs

Value Breakdown

CAGR

15.00%

Initial
Profit

Projected Growth Over Time (at 15.00% CAGR)

Timeline SnapshotYear 1
Initial Investment₹1,00,000
Wealth Gained+₹15,000
Total Value₹1,15,000

💡 Hover or tap any bar to explore other years

YEARS
Initial Investment
Wealth Gained

Year-by-Year Growth Projection

YearInitial InvestmentWealth GainedTotal Value
1 Year₹1,00,000₹15,000₹1,15,000
2 Years₹1,00,000₹17,250₹1,32,250
3 Years₹1,00,000₹19,838₹1,52,088
4 Years₹1,00,000₹22,813₹1,74,901
5 Years₹1,00,000₹26,235₹2,01,136

Understanding CAGR

Compound Annual Growth Rate (CAGR) is a useful measure of growth over multiple time periods. It can be thought of as the growth rate that gets you from the initial investment value to the ending investment value if you assume that the investment has been compounding over the time period.

Difference between CAGR and Absolute Return

While absolute return simply tells you how much your investment has grown in total (e.g., a 50% gain), CAGR tells you the annualized rate of return. For example, if you double your money (100% absolute return) in 10 years, your CAGR is about 7.18%. CAGR provides a better standardized metric to compare different investments with varying holding periods.

Easily calculate the Compound Annual Growth Rate (CAGR) of your investments. Input your initial value, final value, and time period to find out the annualized return.

CAGR Calculator — Frequently Asked Questions

Learn more about Compound Annual Growth Rate, how it's calculated, and why it's a vital metric for evaluating investments.

Compound Annual Growth Rate (CAGR) measures the mean annual growth rate of an investment over a specified period longer than one year. It represents one of the most accurate ways to calculate and determine returns for anything that can rise or fall in value over time.

CAGR is calculated using the formula: CAGR = (Final Value / Initial Value)^(1 / Number of Years) - 1. It assumes that the investment grows at a steady rate and that all profits are reinvested at the end of each year.

CAGR smooths out the volatility of an investment's returns, providing a clear single rate that shows how an investment has grown. This makes it easier to compare the performance of different investments over the same time period.

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