CAGR Calculator
Calculate Compound Annual Growth Rate.
CAGR Calculator
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CAGR
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Initial Value—
Final Value—
Absolute Return—
The Finzorio CAGR Calculator computes Compound Annual Growth Rate for stocks, mutual funds, real estate, and business valuations. Convert raw point-to-point capital gains into standardized annual return percentages over multi-year investment horizons.
What is CAGR & Why Point-to-Point Returns Can Mislead
Compound Annual Growth Rate (CAGR) measures the geometric progression rate at which an investment grows from its initial balance to its final balance, assuming profits were reinvested at the end of each year.
CAGR Mathematical Formula
CAGR = (Ending Value / Beginning Value)^(1 / n) - 1
- Ending Value = Final portfolio value or selling price
- Beginning Value = Initial principal invested
- n = Holding period in years (e.g., 5.5 years)
Worked Example: Real Estate CAGR Calculation
Scenario: Property purchased for ₹40,00,000 in 2018 sold for ₹85,00,000 in 2026 (8-year holding period).
• Absolute Gain = ₹45,00,000 (112.5% total return)
• CAGR Formula: (85,00,000 / 40,00,000)^(1 / 8) - 1
• Calculated CAGR = 9.88% per annum.
Frequently Asked Questions
No. CAGR works only for one-time lumpsum investments. For multiple cash flows like monthly SIPs, use the XIRR (Extended Internal Rate of Return) metric.