Checking returns
CAGR calculator
The yearly return an investment actually delivered.
₹
₹
years
Annual return
12.01%
32% of that is money you put in.
- Started at
- ₹1,00,000
- Gain
- ₹2,11,000
- Now worth
- ₹3,11,000
This is arithmetic, not a forecast. The result applies numbers you chose. Real returns vary year to year, can be negative, and are never guaranteed. Unless stated otherwise the figure is before inflation and before tax.
How this calculation works
Compound annual growth rate is the constant yearly rate that would take the starting value to the ending value over the period. It is the honest way to compare investments held for different lengths of time.
What it leaves out
It says nothing about the journey. Two investments with the same CAGR can have very different paths, and one may have been unbearable to hold. It also ignores any money you added or withdrew along the way.
Understanding the thing itself matters more than the number: Long term investing.
Common questions
Why not just use total return?
Because total return ignores time. A 50% gain over two years and a 50% gain over ten are completely different results, and CAGR is what makes them comparable.
Does CAGR account for money I added later?
No. If you invested more along the way, CAGR between the first and last value will be misleading. For that you need a measure that weights each contribution by when it arrived.
What is a realistic long term CAGR for equity?
Nobody can tell you what the next decade will deliver, and any specific figure quoted with confidence should make you suspicious. What CAGR is genuinely useful for is measuring what your own holdings actually did, rather than predicting what they will do.