CAGR Calculator
Calculate Compound Annual Growth Rate (CAGR), absolute investment returns, and annualized portfolio performance.
About the CAGR Calculator
The CalcNest CAGR Calculator measures the Compound Annual Growth Rate of your stocks, mutual funds, real estate, and business revenues. CAGR is the gold-standard metric for evaluating long-term investment performance because it smooths out annual market fluctuations into a consistent annualized percentage.
Mathematical Formula
CAGR = (Ending Value / Beginning Value)^(1 / n) - 1 Where Ending Value is the current or final portfolio value, Beginning Value is the initial capital invested, and n is the time span in years.
Variables & Components
Worked Example: ₹1,00,000 Portfolio Growing to ₹2,50,000 in 5 Years
Suppose you invested ₹1,00,000 into an equity mutual fund and its value expanded to ₹2,50,000 after exactly 5 years.
Step-by-Step Calculation
- Calculate total return ratio: EV / BV = 2,50,000 / 1,00,000 = 2.5
- Calculate the 5th root exponent: 1 / n = 1 / 5 = 0.2
- Apply CAGR formula: (2.5)^0.2 - 1 = 1.20112 - 1 = 0.20112
- Multiply by 100 to get percentage: CAGR = 20.11% per annum
- Absolute return = ((2,50,000 - 1,00,000) / 1,00,000) × 100 = 150%
How to Use This Calculator
Enter your Initial Investment Value (Beginning Value).
Enter your Target or Current Investment Value (Ending Value).
Specify the Investment Duration in Years.
Instantly view your Compound Annual Growth Rate (CAGR), Absolute Returns, and annual trajectory graph.