Compound Growth Rate
0%
The yearly rate that really applied
See how a crypto holding really compounds when the years go up and down, why the growth rate falls short of the average return, and how deep the falls on the way can be.
Enter a starting amount, check the yearly returns and choose Calculate. Your figures appear here.
0%
The yearly rate that really applied
0%
The simple average of the years
₹0.00
Against the average earned steadily
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From a peak to a later low
₹0.00
Profit and what is left after 30% tax
| Year | Return | Value |
|---|
A scenario from the returns you enter, not a forecast; fees are not included. For one steady rate, use the Crypto CAGR Calculator.
Each year’s return is applied to the value at the end of the year before, so a fall cuts into earlier gains and a rise builds on what is left.
Short answers on how compounding works when crypto rises and falls.
How a crypto holding compounds through uneven years. Enter a starting amount and the return for each year, such as +150%, −60%, +40% and +80%, and it applies them one after another. ₹1,00,000 through those four years ends at ₹2,52,000, a compound growth rate of 25.99% a year.
Because a percentage fall is taken from a bigger amount than the rise that came before it. The four years above average 52.5%, but earning 52.5% steadily for four years would turn ₹1,00,000 into ₹5,40,853.16. The swings cost ₹2,88,853.16. The bigger the swings, the bigger this gap, which is often called volatility drag.
Doubling ₹1,00,000 gives ₹2,00,000, and halving that gives back ₹1,00,000. The average of the two years is +25%, yet the compound growth is 0%. Any loss needs a larger gain to undo it: −50% needs +100%, and −60% needs +150%.
The largest drop from a high point to a later low, often called the drawdown. In the cycle above the value rises to ₹2,50,000 in year 1 and falls to ₹1,00,000 in year 2, a fall of 60%. The calculator also shows the gain needed to get back to the high, here 150%, and marks the peak and the low in the table.
It repeats your returns in order. The four-year cycle run for 8 years ends at ₹6,35,040: the same 25.99% compound growth, applied twice over. Leave the years blank to run the pattern once. A one-year pattern, such as 20%, runs like a steady rate.
It assumes everything is sold at the end and the profit is taxed at India’s flat 30%, plus 4% cess, with no tax on a loss. On the ₹1,52,000 profit above, tax at 30% is ₹45,600. Selling and buying back in between would bring tax forward and lower the growth further. For the full tax on a sale, use the India Crypto Tax Calculator.
The Crypto CAGR Calculator works with one steady rate. The Crypto Investment Calculator adds money every month at a steady return. The Crypto Compound Interest Calculator grows staking or lending interest. This one shows what happens when the yearly returns are uneven, as crypto’s are.