CAGR Calculator

Compound growth, year by year

Find the annualised growth rate between any two portfolio snapshots, with a full year-by-year breakdown chart.

Scenario:Rs 10k start·Rs 120k end·6 years

CAGR

0.00%

Annualised rate

Absolute return

0.00%

Over 6y total

Total gains

Rs 0

From Rs 10k

Doubling time

—

Rule of 72

Compounding growth curve

Invested base + accumulated gain across each year

InvestedGain

Enter values above to see the growth curve.

Year-by-year breakdown

How a constant 0.00% rate compounds your starting capital

0 years

Year	Start value	Gain this year	End value
Enter a starting investment, an ending value and a duration to see the breakdown.

Compounding edge

Interest on interest

Rs 0

Compounding earned you an extra Rs 0 compared to simple interest at the same 0.00% rate over 6 years.

Simple

Rs 0

Compounded

Rs 0

vs benchmarks

Your CAGR alongside PKR yardsticks

KSE-100 (indicative)

Your 0.0% trails 15%

T-bills (indicative)

Your 0.0% trails 12%

Inflation (CPI)

Your 0.0% trails 8%

Benchmarks are indicative long-run PKR figures — actual returns vary year to year.

Unlock more calculators with Premium

CAGR is fully free. Premium adds the Risk Calculator, portfolio sync and live PSX data across devices.

Learn the calculator

Master this tool in 60 seconds

CAGR — Compound Annual Growth Rate — converts a multi-year return into a single, clean annual figure. It is the gold standard for comparing investments with different time horizons.

Step by step

How it works

1
Enter starting principal
The total amount you invested at the beginning of the period. Use the all-in cost basis including any commissions or fees.
2
Enter ending value
The current value (open position) or the realised proceeds (closed position). For dividend stocks, add cumulative dividends for a total-return CAGR.
3
Enter duration in years
Use whole or fractional years (e.g. 3.5). For periods under a year, CAGR mathematically over-extrapolates — use simple ROI instead.
4
Read the annualised rate
A year-by-year compounding table shows exactly how your money grew at that rate. The chart visualises the compounding curve.

Behind the math

The formula

CAGR % = ((Ending Value / Beginning Value) ^ (1 / Years) − 1) × 100 Equivalent statement: Ending = Beginning × (1 + CAGR) ^ Years

CAGR is the geometric mean return — the constant annual rate that would carry your starting principal to its ending value. Unlike simple averages of yearly returns, it correctly accounts for compounding.

Right tool, right moment

When to use it

Comparing PSX returns against fixed-income (T-bills, savings) on equal footing
Evaluating a mutual fund or ETF's long-term performance
Setting realistic future-value expectations for SIPs and retirement plans
Benchmarking your portfolio against KSE-100 over multi-year periods

Sharpen the edge

Pro tips

1
CAGR smooths out volatility — a 30% CAGR portfolio may have had drawdowns of −40% along the way. Look at year-by-year, not just the headline rate.
2
Subtract Pakistan's CPI inflation from CAGR to see the real (purchasing-power) return your money is actually earning.
3
A "Rule of 72" shortcut: 72 ÷ CAGR ≈ years to double. So 12% CAGR doubles money in roughly 6 years.
4
For multi-asset portfolios, calculate a portfolio-level CAGR — individual-position CAGRs can be misleading when position sizes differ.

Frequently asked

Common questions

What is a realistic long-term CAGR for PSX?

KSE-100 has delivered roughly 13–17% PKR CAGR over rolling 10-year windows historically, though individual periods vary widely. After inflation, real returns are typically in the 4–8% range.

Why is CAGR different from average annual return?

Average return is the arithmetic mean — it ignores compounding. CAGR is the geometric mean — it accounts for the fact that gains and losses interact (a 50% loss then a 50% gain leaves you down 25%, not flat).

Can CAGR be negative?

Yes — if your ending value is less than your beginning value, CAGR is negative. This is sometimes called "compound annual decline rate" but the math is identical.

CAGR Calculator

Compound growth, year by year

Find the annualised growth rate between any two portfolio snapshots, with a full year-by-year breakdown chart.

Scenario:Rs 10k start·Rs 120k end·6 years

CAGR

0.00%

Annualised rate

Absolute return

0.00%

Over 6y total

Total gains

Rs 0

From Rs 10k

Doubling time

—

Rule of 72

Compounding growth curve

Invested base + accumulated gain across each year

InvestedGain

Enter values above to see the growth curve.

Year-by-year breakdown

How a constant 0.00% rate compounds your starting capital

0 years

Year	Start value	Gain this year	End value
Enter a starting investment, an ending value and a duration to see the breakdown.

Compounding edge

Interest on interest

Rs 0

Compounding earned you an extra Rs 0 compared to simple interest at the same 0.00% rate over 6 years.

Simple

Rs 0

Compounded

Rs 0

vs benchmarks

Your CAGR alongside PKR yardsticks

KSE-100 (indicative)

Your 0.0% trails 15%

T-bills (indicative)

Your 0.0% trails 12%

Inflation (CPI)

Your 0.0% trails 8%

Benchmarks are indicative long-run PKR figures — actual returns vary year to year.

Unlock more calculators with Premium

CAGR is fully free. Premium adds the Risk Calculator, portfolio sync and live PSX data across devices.

Learn the calculator

Master this tool in 60 seconds

CAGR — Compound Annual Growth Rate — converts a multi-year return into a single, clean annual figure. It is the gold standard for comparing investments with different time horizons.

Step by step

How it works

1
Enter starting principal
The total amount you invested at the beginning of the period. Use the all-in cost basis including any commissions or fees.
2
Enter ending value
The current value (open position) or the realised proceeds (closed position). For dividend stocks, add cumulative dividends for a total-return CAGR.
3
Enter duration in years
Use whole or fractional years (e.g. 3.5). For periods under a year, CAGR mathematically over-extrapolates — use simple ROI instead.
4
Read the annualised rate
A year-by-year compounding table shows exactly how your money grew at that rate. The chart visualises the compounding curve.

Behind the math

The formula

CAGR % = ((Ending Value / Beginning Value) ^ (1 / Years) − 1) × 100 Equivalent statement: Ending = Beginning × (1 + CAGR) ^ Years

Right tool, right moment

When to use it

Comparing PSX returns against fixed-income (T-bills, savings) on equal footing
Evaluating a mutual fund or ETF's long-term performance
Setting realistic future-value expectations for SIPs and retirement plans
Benchmarking your portfolio against KSE-100 over multi-year periods

Sharpen the edge

Pro tips

1
CAGR smooths out volatility — a 30% CAGR portfolio may have had drawdowns of −40% along the way. Look at year-by-year, not just the headline rate.
2
Subtract Pakistan's CPI inflation from CAGR to see the real (purchasing-power) return your money is actually earning.
3
A "Rule of 72" shortcut: 72 ÷ CAGR ≈ years to double. So 12% CAGR doubles money in roughly 6 years.
4
For multi-asset portfolios, calculate a portfolio-level CAGR — individual-position CAGRs can be misleading when position sizes differ.

Frequently asked

Common questions

What is a realistic long-term CAGR for PSX?

KSE-100 has delivered roughly 13–17% PKR CAGR over rolling 10-year windows historically, though individual periods vary widely. After inflation, real returns are typically in the 4–8% range.

Why is CAGR different from average annual return?

Can CAGR be negative?

Yes — if your ending value is less than your beginning value, CAGR is negative. This is sometimes called "compound annual decline rate" but the math is identical.