CAGR Calculator · WealthJot.ai

📊 CAGR Calculator

Calculate Compound Annual Growth Rate between two values

CAGR: cagr is 17.46%, based on the entered inputs.

17.46%

17.46% cagr — 5× your money

Mode

Initial Value₹1,00,000

Final Value₹5,00,000

Period10 yr

Absolute Return

400%

Total Gain / Loss

₹4,00,000

Wealth Multiplier

5×

Real Return (vs 6% inflation)

11.46%

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Formula

CAGR = (End Value ÷ Start Value)^(1 ÷ Years) − 1

Worked example

Input	Value
Mode	Calculate CAGR
Initial Value	₹1,00,000
Final Value	₹5,00,000
Period	10 yr
CAGR	17.46%
Absolute Return	400%
Total Gain / Loss	₹4,00,000
Wealth Multiplier	5×
Real Return (vs 6% inflation)	11.46%

What CAGR actually tells you

CAGR answers one precise question: at what single steady rate would my money have had to grow to get from the starting value to the ending value in this many years? It smooths a bumpy journey into one comparable number — which is both its power and its trap.

CAGR = (End ÷ Start)^(1/years) − 1

The geometric average annual growth rate between two points in time.

Example₹1 lakh becoming ₹4 lakh in 10 years = 14.87% CAGR, even if the actual path was +60%, −30%, three flat years and a late surge. And “doubled in 10 years”, which sounds impressive, is only 7.2% CAGR — barely an FD. Always convert absolute returns to CAGR before judging anything.

Common mistakeComparing CAGRs across different windows or cherry-picked endpoints. A fund’s 5-year CAGR measured from a market bottom flatters it enormously; the same fund from the prior peak looks mediocre. Compare like windows, prefer rolling returns, and treat any CAGR that starts at a crash low with suspicion.

✓ You learnedCAGR is the honest converter between “my money went from X to Y” and “what rate is that?” — use it to compare investments on equal footing, but remember it hides volatility and depends entirely on its two endpoints.

FAQs

What is a good CAGR for investments in India?

Context is everything: savings accounts ~3%, FDs ~6-7%, long-run diversified equity ~11-13%. A sustained portfolio CAGR of 12%+ over a decade is genuinely good; claims of steady 20%+ CAGR are either survivorship luck, leverage, or marketing. Compare any number against the boring index alternative over the same window.

CAGR vs absolute return — which should I look at?

Absolute return ("+150%") ignores time and is nearly meaningless on its own — +150% is spectacular in 3 years (35.7% CAGR) and mediocre in 15 (6.3%). CAGR annualises the growth so different investments and periods become comparable. For anything held over a year, think in CAGR.