CAGR (Compound Annual Growth Rate) Calculator 2026
Calculate the true annual compounded growth rate of your stocks, mutual funds, and real estate investments.
CAGR
20.11%
Annualized return over 5 years.
Returns at a glance
Absolute gain
₹1.50 L
Absolute return
150.00%
Initial
₹1.00 L
Final
₹2.50 L
Implied year-by-year value at 20.11% CAGR
| Year | Value | Growth from start |
|---|---|---|
| 0 | ₹1.00 L | 0.0% |
| 1 | ₹1.20 L | 20.1% |
| 2 | ₹1.44 L | 44.3% |
| 3 | ₹1.73 L | 73.3% |
| 4 | ₹2.08 L | 108.1% |
| 5 | ₹2.50 L | 150.0% |
Growth curve
The CAGR Standard: Measuring True Annualized Growth Across Volatile Assets
Absolute percentage return is deeply misleading across multi-year investments: a 100% gain over 10 years sounds impressive, but translates to an annualized return (CAGR) of approximately 7.18%—barely matching bank fixed deposits. CAGR provides a standardized, smoothed annual metric to compare performance across diverse asset classes.
Where n denotes the exact investment holding period in years.
Compound Annual Growth Rate (CAGR) FAQs
Important guidelines on measuring multi-year investment performance.
What is the difference between CAGR and XIRR?
CAGR measures point-to-point annualized growth between a single initial investment and final value. XIRR (Extended Internal Rate of Return) calculates annualized performance for irregular, multiple cash inflows and outflows (such as monthly SIPs and periodic withdrawals).
Does CAGR account for investment risk and drawdowns during intermediate years?
No. CAGR smooths out performance as if growth occurred at a constant annual rate, completely concealing sharp intermediate market drawdowns, volatility, and standard deviation.
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