Compound Annual Growth Rate is the constant yearly rate that would grow your initial investment to the final value over the holding period. Formula: ((Final ÷ Initial)^(1 ÷ years) − 1) × 100.

Absolute gain is Final − Initial in rupees. Absolute return is that gain as a percentage of the initial amount. CAGR annualises the same journey so you can compare 3-year and 10-year investments fairly.

If initial investment, final value or years is zero or negative in a way that makes the formula undefined, CAGR is blank. Enter positive start and end values with at least one year.

Yes. If the final value is below the initial investment, CAGR is negative and shows the annualised rate of loss.

No. It illustrates what balances would look like if the investment grew at a constant CAGR each year. Markets fluctuate; actual year-by-year returns differ.

CAGR assumes one lump sum. For SIPs with many cash flows, XIRR (or a mutual fund returns calculator) is more accurate.

For a single lump-sum investment with no fees, yes — they use the same formula. Our ROI calculator also supports fees, inflation and date-based holding periods.

There is no fixed benchmark. Long-term equity may aim above inflation and fixed-deposit rates, but past CAGR does not guarantee future results. Compare against relevant indices and your risk tolerance.

No. Enter after-tax or after-cost final values if you want net CAGR. Capital gains tax and loads reduce realised returns.

This calculator measures CAGR from known start and end values. For target-return goal-seek, use the ROI calculator’s target final value mode.

Enter beginning value (or invested amount at start), ending value and exact years between dates. CAGR annualises the growth path; it is not the same as year-by-year market returns shown for illustration.

Absolute return is total % gain over the whole period. CAGR converts that into an equivalent yearly compounded rate. Longer holding periods usually make absolute return look larger while CAGR stays comparable across tenures.