CAGR Calculator
CAGR represents the annualized rate of compound growth of an investment held over a specific time horizon exceeding 1 year.
Input Calculation Parameters
₹
₹
Years
Calculation Results
Compound Annual Growth Rate (CAGR)
0
Total Absolute Return
0
How the Calculation Works
CAGR Formula = (Final Value / Initial Value)^(1 / Years) - 1.
Worked Example
Here is a step-by-step example calculation for ₹1 Lakh growing to ₹2.5 Lakh over 5 Years:
| Parameter | Value |
|---|---|
| Cagr | 20.11% p.a. |
| Absolute Return | 150.00% |
Scenario Analysis
Comparing different tenures, interest rates, or investment horizons:
| Scenario Label | Key Metric |
|---|---|
| 5 Year Double | Cagr: 14.87% |
Common Mistakes to Avoid
- Using absolute returns to compare multi-year investments instead of annualized CAGR.
Frequently Asked Questions (FAQs)
What is the difference between CAGR and XIRR?
CAGR measures single lumpsum returns. XIRR measures annualized returns for multiple cash flows (like SIPs).
Authoritative Sources & Regulatory References
Author: SmartPaisa Financial Research Team
Reviewer: Reviewed by Financial Engineering Team
Last Reviewed: 2026-08-17
Financial Disclaimer: This calculator provides estimates for educational purposes only based on standard mathematical formulas and current Indian regulatory guidelines. Actual returns, taxes, or EMI payments may vary depending on bank policies, market volatility, or individual tax brackets. Consult a SEBI-registered investment advisor or Chartered Accountant (CA) before making financial decisions.
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