CAGR Calculator — annualized growth of your investment
CAGR क्यालकुलेटर — लगानीको वार्षिक वृद्धि दर
Calculate CAGR (compound annual growth rate) of any investment — start value, end value and years → annualized return in percent, plus what the same rate does to your next investment.
CAGR = (End ÷ Start)^(1/years) − 1. It describes the past only; NEPSE instruments can move far from historical trends.
About CAGR Calculator
CAGR (Compound Annual Growth Rate) flattens a multi-year investment result into one annual % rate: CAGR = (End/Start)^(1/years) − 1. It is the fair way to compare a share portfolio that grew 40% in 3 years with an FD earning a steady 9.5%.
This tool gives the CAGR, the total growth, and the future value projection if your investment keeps the same pace. Volatility is averaged out — that is its power and its blind spot, both explained below.
How to use — step by step
- Enter the initial investment and the final value.
- Enter the holding period in years (decimals allowed, e.g. 2.5).
- Read the CAGR %, total growth and projected value if the rate continues.
- Compare with the FD/effective-yield figures in our deposit tools.
Worked example — Rs 1,00,000 → Rs 1,40,000 in 3 years
| Total growth | 40% | 1,40,000 ÷ 1,00,000 − 1 |
| CAGR | ≈ 11.9% / year | 1.4^(1/3) − 1 |
| If rate continues 3 more years | ≈ Rs 2,74,000 | (1.119)^6 × 1,00,000 |
| Compare: FD 10.5% effective | ≈ Rs 1,34,500 | CAGR of portfolio wins here |
Frequently asked questions
QWhat is a good CAGR in Nepal?
Context matters: bank FDs gave roughly 9–12% in recent years, so an equity portfolio beating ~12% annualized is doing meaningfully better than the risk-free-ish route. NEPSE indices swing wildly, so judge CAGR over at least 3–5 years, not one bull run.
QWhy is CAGR misleading sometimes?
Because it averages the path, not just the start and end. A fund +90% then −50% lands exactly where it began — CAGR 0% — but the ride felt different. For contributions along the way (SIP-style), a money-weighted measure like IRR is fairer.
QIs CAGR forward-looking?
No — it describes history. The projection row here simply compounds the historical rate forward and is labelled as such. NEPSE-listed instruments can and do move far from past trends.
QHow does tax change CAGR?
Realized gains can carry tax, and dividends from listed companies are taxed at source in Nepal. Compute CAGR on post-tax figures when comparing with fixed deposits' 5% TDS-bitten interest for the same honest footing.