Annualized Return Calculator

The Annualized Return Calculator computes the CAGR (Compound Annual Growth Rate) of any investment using precise calendar dates rather than a rounded number of years. This makes it more accurate than a basic CAGR calculator for investments held for fractional periods — e.g., 2 years and 8 months rather than a rounded 3 years. The difference between using 2.67 years versus 3 years can be meaningful when calculating exact returns for redemption planning, tax purposes (for LTCG/STCG classification in India), or benchmarking. SEBI's NAV-based return calculations use exact day counts, making this the correct approach for precise mutual fund performance measurement.

Annualized Return = (End Value / Start Value)^(1 / Exact Years) - 1

Exact Years = (End Date - Start Date in days) / 365.25

Example:
Start: ₹1,00,000 on 15-Jan-2021 | End: ₹1,60,000 on 28-Jul-2026
Exact holding = 5.53 years
Annualized Return = (1.6)^(1/5.53) - 1 = 9.02%

Annualized Return

The geometric rate of return over an investment period, expressed as if held for exactly one year — equivalent to CAGR when using exact calendar dates.

Fractional Year

An investment holding period that is not a whole number of years. E.g., 2 years and 8 months = 2.67 fractional years.

LTCG (Long-Term Capital Gains)

In India, equity fund gains are classified as long-term if held for more than 12 months, taxed at 12.5% above ₹1.25 lakh exemption (FY2024-25 Budget).