Money calculator

CAGR / Returns

Annualised and absolute return between two values. Adjust the sliders or type exact values — results update instantly.

Your inputs

Initial value

Final value

Period

CAGR

20.11%

Initial value₹1,00,000
Gain₹1,50,000

Absolute return: 150.00%
Gain / loss: ₹1,50,000

Results are estimates. They are based only on the values you enter and the assumptions listed below, and may differ from the figures your bank, lender or fund house provides.

How it works

How the CAGR / Returns calculator works

CAGR (Compound Annual Growth Rate) expresses the annual growth rate an investment would need to grow smoothly from its initial value to its final value over a given period, smoothing out the year-to-year fluctuations an investment might have actually experienced.

Enter the initial value, final value, and the number of years between them to get the CAGR, alongside the absolute (total, non-annualised) return and the plain gain or loss in value.

For example, an investment that grew from ₹5L to ₹12L over 7 years has a CAGR of roughly 13.3% — even though the absolute return over the full period is 140%, the annualised figure is what makes it comparable to other investments held for different lengths of time.

FAQ

Frequently asked questions

What is CAGR used for?

CAGR is commonly used to compare the performance of different investments over the same period on a like-for-like annualised basis, since it smooths out volatility into a single average annual growth figure.

CAGR vs absolute return — what’s the difference?

Absolute return is the total percentage gain or loss over the entire period, regardless of how long it took. CAGR annualises that same return, making it comparable across investments held for different lengths of time.

What is considered a good CAGR?

It depends on the asset class and time period — long-term equity investments in India have historically delivered CAGRs in the low-to-mid teens over extended periods, while fixed-income instruments are typically lower. Compare against a relevant benchmark for the same period rather than a fixed target.

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