Selvayana: CAGR calculatorEducational estimate, not investment advice. Selvayana is not registered with SEBI as an Investment Adviser or Research Analyst. Figures use the assumptions shown and are not predictions.
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Detailed breakdown
CAGR calculator: a quick guide
What is CAGR?
Compound annual growth rate (CAGR) is the steady yearly rate that would take an investment from its starting value to its current value. It turns a total gain into a yearly figure you can compare across investments.
How this calculator works it out
CAGR = (current value ÷ starting value)1 ÷ years − 1
An example
₹1 lakh that grows to ₹2.5 lakh in 7 years has a CAGR of about 13.99% a year. The absolute return over the whole period is 150%.
Good to know
CAGR smooths out the ups and downs; the investment did not actually grow 13.99% every single year.
It suits a single investment with one start and one end. For SIPs or several deposits and withdrawals, use the XIRR calculator.
How it's calculated
CAGR = (current value ÷ starting value)^(1 ÷ years) − 1. It is the steady yearly rate that would take the starting value to the current value.
Common questions
When should I use XIRR instead?
Use XIRR when you invested in instalments or on several dates, such as a SIP. CAGR is for a single investment.
For awareness only. Not investment advice or a recommendation to buy, sell or hold any security or product. All figures are estimates based on the inputs and assumptions shown; actual results will differ and may be much lower. No return is guaranteed. Investments in securities market are subject to market risks. Read all related documents carefully before investing. Consult a SEBI Registered Investment Adviser before acting. Printed from Selvayana on .