CAGR (Compound Annual Growth Rate) is the smoothed annual rate at which an investment grew from its initial to final value over a period.

CAGR = (Final ÷ Initial)^(1/years) − 1, expressed as a percentage.

Is higher CAGR always better?

Higher CAGR with lower volatility is ideal. Compare CAGR alongside risk metrics like standard deviation and max drawdown.

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CAGR Calculator

Find the true annualised return of any investment.

Reviewed by Nisha SLast verified 6 Sept 2026RBI-compliantFact-check policy

Initial Value₹1,00,000

₹1K₹10Cr

Final Value₹2,50,000

₹1K₹100Cr

Period (years)5 yrs

140

Absolute Gain₹1,50,000

CAGR20.11%

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CAGR shows the annual rate at which an investment grew, smoothing out volatility — useful for comparing returns across periods.

CAGR = (Final / Initial)^(1/years) − 1

Everything you need to know about the CAGR Calculator.

Results are illustrative estimates for planning. Actual figures depend on bank/AMC terms, taxes and market conditions.