CAGR Calculator

The steady yearly growth between two values.

Your inputs

Values
Find
price you paid
decimals OK
years
% a year

Your result

Indicative
CAGR
7.62% a year

1.80 times the start; a gain of ₹ 40,00,000.

80.00%
Total growth
2.50%
After inflation, a year
₹ 60,91,554
End value in today’s money
9.4 years
Time to double
After 5.00% inflation the growth is 2.50% a year.

Quick answer: CAGR = (end value ÷ start value)^(1 ÷ years) − 1. A flat bought for ₹ 50 lakh and worth ₹ 90 lakh after 8 years grew at 7.62% a year. After 5% inflation that is 2.50% a year. CAGR leaves out rent, stamp duty, registration and selling costs.

Step by step

Updates as you type
Compound growth, before costs and tax.
StepValue
Starting value₹ 50,00,000
Ending value₹ 90,00,000
End ÷ start1.8000
Years8
CAGR7.62%
Inflation5.00%
CAGR after inflation2.50%

How do you use the CAGR calculator?

  1. Pick what to find: the yearly growth rate between two values, or the value after some years at a given rate.
  2. Enter the starting value, such as the price you paid, and either the value now or the growth rate. Enter the number of years; part years such as 2.5 work.
  3. Read the CAGR or the future value, and the same growth after inflation.

What is CAGR?

CAGR, the compound annual growth rate, is the steady yearly rate that would turn a starting value into an ending value over a number of years. It smooths out good and bad years into one figure, which makes it easy to compare a flat bought in 2018 with one bought in 2022, or a flat with an FD.

CAGR looks only at the start and end values. For a rented flat, it leaves out the rent, stamp duty and registration, and selling costs. To count those, use the inflation-adjusted property returns calculator, which works out the full yearly return.

The CAGR formulas

1
CAGR(End value ÷ start value)^(1 ÷ years) − 1
2
Future valueStart value × (1 + CAGR)^years
3
After inflation(1 + CAGR) ÷ (1 + inflation) − 1
4
Time to doubleln 2 ÷ ln(1 + CAGR)

Worked example: ₹ 50 lakh flat now worth ₹ 90 lakh after 8 years

₹ 90 lakh ÷ ₹ 50 lakh is 1.8. The eighth root of 1.8 is about 1.0762, so the CAGR is 7.62% a year. After 5% inflation, that is 2.50% a year, and the ₹ 90 lakh is worth ₹ 60,91,554 in today’s money.

Worked example: what ₹ 50 lakh becomes at 7% a year

Over 10 years at 7%, ₹ 50 lakh grows to ₹ 98,35,757, 1.97 times the start. A flat bought for ₹ 60 lakh and sold for ₹ 50 lakh after 4 years has a CAGR of −4.46%.

CAGR for some example prices

Price change only; before costs and tax. Inflation 5%.
Bought forWorth nowYearsCAGRAfter inflation
₹ 25,00,000₹ 40,00,00059.86%4.62%
₹ 50,00,000₹ 90,00,00087.62%2.50%
₹ 80,00,000₹ 1,20,00,00066.99%1.90%
₹ 1,00,00,000₹ 1,40,00,000103.42%−1.50%

What should you keep in mind?

Frequently asked questions

Divide the end value by the start value, raise the result to the power of one over the number of years, and subtract one. A flat bought for ₹ 50 lakh and worth ₹ 90 lakh after 8 years has a CAGR of 7.62% a year.

There is no single figure; it depends on the locality, the period and inflation. Compare the CAGR with inflation and with what the same money would earn elsewhere, such as an FD. A CAGR above inflation means the property gained buying power.

Total return is the whole change as a percentage: ₹ 50 lakh to ₹ 90 lakh is 80%. CAGR spreads that over the years as a steady yearly rate: 80% over 8 years is 7.62% a year, not 10%, because growth compounds.

Yes. If the end value is below the start value, CAGR is negative. A flat bought for ₹ 60 lakh and sold for ₹ 50 lakh after 4 years has a CAGR of −4.46% a year, before costs and tax.

No. CAGR uses only the start and end values. Rent, stamp duty, registration, upkeep and selling costs are left out. The inflation-adjusted property returns calculator counts all of them to give the full yearly return, which for a rented flat can be well above or below the CAGR.

A gain on a home held more than 24 months is taxed at 12.5% plus cess; sooner, it is taxed at your slab. Reinvesting the gain in another home may reduce the tax, subject to conditions. Please verify with your Chartered Accountant before acting.

Sources

Indicative only. Verify any tax effect with your Chartered Accountant before acting.

Buying a home in Bengaluru? Talk to an acre&key advisor.

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