CAGR Calculator (Compound Annual Growth Rate)
Find the true annualized return on any investment. CAGR is the only correct metric for comparing investments across different time periods.
Investment Report
EQUIS Take (Asli Sach)
Absolute return (e.g. 50% profit) dekh kar dhoka mat khana. Agar wo 50% aane mein 10 saal lag gaye, toh
The Math Behind CAGR Calculator (Compound Annual Growth Rate)
Understanding the true mechanics of this instrument helps you make optimal decisions with your money.
1. The Only True Benchmark
CAGR (Compound Annual Growth Rate) is the only valid way to compare multi-year investments. It eliminates year-on-year volatility to show the single equivalent annual growth rate of your investment.
2. The Rule of 72
To quickly find how many years it takes to double your money, divide 72 by the CAGR. At 12% CAGR: 72/12 = 6 years to double. At 6% (FD rate): 72/6 = 12 years.
3. Absolute Returns Are Misleading
A '2x return in 10 years' sounds impressive but is only 7.2% CAGR — barely beating inflation. A '2x return in 5 years' is 14.9% CAGR — excellent. Always calculate CAGR before judging any investment.
Frequently Asked Questions
How do I calculate CAGR manually?expand_more
What is a good CAGR for mutual funds in India?expand_more
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