Investment Progression
₹ 1,00,000
₹
₹ 2,50,000
₹
5 Years
Years
CAGR Analysis
CAGR Rate (p.a.)
20.11%
Absolute Returns
150.00%
Total Wealth Gain
₹ 1,50,000
Annual Return Comparison
To achieve a growth of 150.00% in 5 years, compare compounded CAGR against flat annual returns:
Compounded CAGR
20.11% / yr
Flat Simple Return
30.00% / yr
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Compound Annual Growth Rate Formulas
The mathematical computation to normalize multi-period growth ratios is formulated as:
CAGR = ( Vfinal / Vinitial ) ( 1 / t ) - 1
Where:
- Vinitial = Beginning investment value
- Vfinal = Ending investment value
- t = Investment duration in years
Projected Compounding Growth Milestone Ledger
| Year | Opening Asset Value | Yearly Compounded Gain | Closing Asset Value |
|---|
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Frequently Asked Questions
Investments fluctuate highly year-on-year. CAGR filters out intermediate volatility and presents a single, smoothed yearly growth percentage. This lets you compare mutual funds, gold, real estate, and fixed deposits side-by-side.
No, CAGR is a representative geometric progression score. It assuming the asset grew at a steady, perfectly compounded speed, which is rarely what happens in highly volatile equity stock markets.