Includes 2-page detailed calculation analysis, algorithm definition, formula breakdown, and milestone schedule.
Breakdown of your final portfolio value
Final Portfolio Value
₹3,50,000
over 5 years
Transparency into how your CAGR Calculator numbers are derived, step-by-step mathematical formulation, and key milestone projections.
Computes the true geometric mean rate connecting initial and final capital over n years: ((V_n / V_0)^(1/n) - 1) × 100. Unlike arithmetic averages that distort volatile swings, the CAGR algorithm provides the accurate annualized smoothed trajectory of capital compounding.
Compounded Return (CAGR)
28.47% p.a.
True geometric annual return
Absolute Return
+250.0%
Total percentage gain
Total Capital Gain
₹2,50,000
Net profit generated
Simple Average
50.0% p.a.
Arithmetic annual return
CAGR = (Final / Initial)^(1 / n) - 1CAGR represents the mean annual growth rate of an investment over a specified period longer than one year, assuming the investment compounded smoothly over that period.
| Milestone | Initial Capital | Capital Growth | Portfolio Value |
|---|---|---|---|
| Year 1 | ₹1,00,000 | ₹28,474 | ₹1,28,474 |
| Year 2 | ₹1,00,000 | ₹65,054 | ₹1,65,054 |
| Year 3 | ₹1,00,000 | ₹1,12,051 | ₹2,12,051 |
| Year 5 | ₹1,00,000 | ₹2,50,000 | ₹3,50,000 |
A CAGR of 28.47% means your investment performed as if it grew by exactly 28.47% every single year without interim volatility.
Geometric vs Arithmetic: Never judge long-term investments by simple average returns; CAGR is the gold standard for measuring mutual fund and equity performance.
Benchmark comparison: Indian Nifty 50 has historically delivered ~12-14% CAGR over 10-15 year horizons.
CAGR is one of the most accurate ways to calculate and determine returns for anything that can rise or fall in value over time. It dampens erratic market swings to give a single annualized rate.
Smooths out volatile years (e.g. +30% in year 1, -10% in year 2) into one unified geometric rate.
Allows comparing two investments held across differing time horizons on an equal annual footing.
Assumes all dividends and gains were continuously reinvested back into the asset.
CAGR is the single annual growth rate that would take an investment from its starting value to its ending value. This CAGR calculator smooths out volatile years into one comparable annualised number.
These calculators are for illustration only. Returns shown are estimates based on the inputs you provide and are not a guarantee of future performance. Mutual fund investments are subject to market risks; read all scheme related documents carefully.