Compounding & CAGR

Watch small returns snowball.

Compounding is the quiet engine behind serious account growth: each period’s gains earn their own gains. Project a steady-rate future value, or work out the annualised return (CAGR) of a result you already have.

Future value projection CAGR from any result

A projection tool for understanding growth — not a forecast or a promise of returns. Markets don’t move in a straight line.

Compounding Growth maths
Final value
₹1,79,586
After 12 periods at 5% each, compounded
Total growth
₹79,586
+79.6%
Multiple
1.80×
Of your starting amount
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The two modes

Project forward, or measure backward

Project growth

Start with an amount and a steady return per period to see the compounded final value, total growth and how many times your money multiplies.

Find CAGR

Already have a start and end value over a number of years? CAGR converts it into a single, comparable annual return rate.

CAGR = (Final ÷ Initial)^(1 ÷ Years) − 1. It smooths a bumpy journey into one steady annual rate, which makes very different results easy to compare side by side.

Growth starts with keeping costs low

Every rupee lost to charges is a rupee that can’t compound. Know your real costs first.

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The math behind it

How does compounding actually grow trading capital?

Compounding means each period's return is earned on the previous period's ending balance, not just your starting capital. At 2% a month, ₹1,00,000 does not grow by ₹2,000 twelve times (₹1,24,000) — it grows to about ₹1,26,824, because every month's 2% applies to a slightly bigger base.

Monthly returnAfter 1 yearAfter 3 yearsAfter 5 years
1% / month₹1,12,683₹1,43,077₹1,81,670
2% / month₹1,26,824₹2,03,989₹3,28,103
3% / month₹1,42,576₹2,89,828₹5,89,160

Starting capital ₹1,00,000, returns reinvested, before charges and taxes. Consistency matters far more than the headline number — a 3% month followed by a −3% month leaves you slightly below where you started (0.97 × 1.03 = 0.9991). Charges compound against you the same way returns compound for you, which is why the brokerage calculator and this tool belong together. Figures are illustrative mathematics, not projected or promised returns.