Your money grew. But how fast, each year?CAGR calculator: the yearly growth rate between two amounts.

How to use the CAGR calculator

1. Enter the starting amount: what you put in, or what the investment was worth at the start.
2. Enter the final amount, what it’s worth now or at the end, and the number of years in between.
3. Add the inflation you assume for those years to see the real growth rate as well.

How to read your result

CAGR is the growth rate a year. Absolute return is the total growth, from start to end. Real CAGR is the yearly growth after inflation: how much more your money can actually buy.

For example, ₹1,00,000 that becomes ₹2,00,000 in 6 years has an absolute return of 100%. That isn’t 16.7% a year, because growth compounds. The CAGR is about 12.2% a year. If prices rose about 6% a year in that time, the real CAGR is about 5.9% a year.

CAGR smooths out the journey. A fund with a 12% CAGR didn’t grow 12% every year; some years were higher, some lower, and some were negative. Past growth doesn’t tell you future returns, and mutual fund returns are market-linked. To see what an amount could grow to at a rate you assume, use the lumpsum calculator.

How the CAGR calculator works

CAGR, or compound annual growth rate, is the one steady yearly rate that would take your starting amount to your final amount in the same number of years. Absolute return is the total growth over the whole period. Real CAGR takes inflation out, to show how much your buying power grew each year.

CAGR = (Final ÷ Initial)^(1 ÷ years) − 1; Absolute return = (Final − Initial) ÷ Initial × 100; Real CAGR = (1 + CAGR) ÷ (1 + inflation) − 1