CAGR Calculator - Compound Annual Growth Rate

Calculate compound annual growth rate (CAGR) and absolute returns for your mutual fund and stock investments.

Reviewed for Budget 2025 • Last updated 21 June 2026 • by Sandesh D.

CAGR Parameters

Initial Investment Value₹1,00,000
The buying price or beginning value
₹
Ending Investment Value₹2,00,000
The selling price or current valuation
₹
Duration (Years)5 Years
Number of years between the two dates
Years

Annualized Returns

CAGR: 14.87% p.a.
Compound Annual Growth Rate (CAGR)14.87%
Absolute Return100%
Total Gains Earned₹1,00,000

Need to measure irregular investments?

If you make multiple regular contributions (like SIPs) or partial redemptions, use our XIRR calculator.

Calculate XIRR

Calculation Methodology & Rules

The CAGR Calculator computes the annualized growth rate of a single investment over a specified time period.

CAGR Calculation Formula

CAGR is computed using the following equation:

CAGR = [ (Ending Value / Beginning Value)(1 / Years)- 1 ] × 100

Absolute Return Formula

Absolute return is the simple, time-independent percentage change:

Absolute Return = [ (Ending Value - Beginning Value) / Beginning Value ] × 100

For detailed rules, formulas, references, and official guidelines, see the complete Ganakam Calculation Methodology.

Frequently Asked Questions

CAGR stands for Compound Annual Growth Rate. It represents the constant smoothed annual rate at which an investment would have grown if it grew at a steady compounded rate over the investment period.

The formula to calculate CAGR is: CAGR = [(Ending Value / Beginning Value) ^ (1 / Years)] - 1. This rate is then multiplied by 100 to express it as a percentage.

Absolute Return measures the total percentage gain or loss of an investment, completely ignoring the time it took. CAGR accounts for time, showing the annualized rate. For example, doubling your money (100% absolute return) over 1 year is a 100% CAGR, but doubling it over 5 years is a 14.87% CAGR.

Use CAGR when you are evaluating a single lump-sum investment made at the beginning and redeemed at the end. If you have multiple transactions occurring at irregular dates (like SIPs, dividends, or partial withdrawals), you must use XIRR instead.