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Investments & growth
CAGR Calculator India
Find the true yearly return on any investment: put in what you started with, what it is worth now, and the years in between, and get the compound annual growth rate (CAGR). It turns a big headline number into one honest yearly figure you can compare with an FD, inflation or another fund.
₹1 lakh that becomes ₹2.5 lakh in five years is a 150% return, but only 20.1% a year. Stretch the same 150% over fifteen years and it is 6.3% a year, less than a bank FD. A total return means nothing until you know how long it took.
Open the detailed calculator with sliders and the full breakdown
About the CAGR calculator
CAGR is the single steady yearly rate that would take your starting amount to your ending amount over the same number of years. Real investments never grow in a straight line, so CAGR is a smoothed figure, but it is the fairest way to compare two investments held for different lengths of time.
| ₹1 lakh became ₹2.5 lakh in | CAGR |
|---|---|
| 3 years | 35.7% a year |
| 5 years | 20.1% a year |
| 10 years | 9.6% a year |
| 15 years | 6.3% a year |
One headline, "150% returns", four very different investments. Always ask how many years a total return took.
What is my CAGR if ₹1 lakh became ₹2.5 lakh in 5 years?
20.11% a year. Your money grew 2.5 times, a 150% absolute return, and 20.11% compounded for five years produces exactly that. Enter your own starting value, ending value and years above.
How is CAGR calculated?
CAGR = (ending value ÷ starting value)1/years − 1. For the default: 2,50,000 ÷ 1,00,000 = 2.5; the fifth root of 2.5 is 1.2011; subtract 1 and you get 20.11%. The calculator only looks at the two end points, so it ignores what happened in between.
What is the difference between CAGR and absolute return?
Absolute return is the total gain as a percentage, with no time attached: ₹1 lakh to ₹2.5 lakh is 150% whether it took three years or fifteen. CAGR divides that gain fairly across the years. Brochures and tips often quote the absolute number because it looks bigger. The table above shows why the years change everything.
Why is CAGR lower than the average of yearly returns?
Because losses hurt more than gains help. A fall needs a bigger rise to recover, so a simple average of yearly returns flatters a bumpy investment. The honest number is the CAGR.
| Year 1, then year 2 | Average return | You end with | CAGR |
|---|---|---|---|
| +50%, then −50% | 0% | ₹75,000 | −13.4% |
| +30%, then −10% | 10% | ₹1,17,000 | 8.2% |
| +10%, then +10% | 10% | ₹1,21,000 | 10% |
The same 10% average can hide very different results. Steadier returns keep more of your money, which is why CAGR, not the average, is the fair yardstick.
Should I use CAGR or XIRR for my SIP?
Use XIRR for a SIP. CAGR assumes one amount invested on day one and left alone, which fits a lump sum. A SIP puts in money every month, so each instalment is invested for a different length of time; XIRR handles those dates and gives the yearly return. Your fund statement or app usually shows XIRR for SIP holdings.
What is a good CAGR?
One that beats what you could have earned safely, after tax and inflation. Two benchmarks keep you honest. A bank FD at 7% compounded quarterly works out to about 7.2% a year before tax; if a risky investment did not clearly beat that, the risk was not paid for. And 6% inflation is the floor below which your money is losing buying power. For equity over long periods, the 25-year record of the Nifty is the fair comparison.
Is the CAGR before or after tax and fees?
It is whatever the two values you enter already include. A mutual fund's NAV is net of its expense ratio, so a CAGR worked out from NAVs is after fund fees but before your own tax. To see what you really earned, use the value you would have in hand after selling and paying tax as the ending value.
What is my CAGR after inflation?
Divide rather than subtract. Real CAGR = (1 + CAGR) ÷ (1 + inflation) − 1. On the default, 20.11% a year with 6% inflation is a real return of about 13.3% a year, not 14.1%. For small rates the shortcut of subtracting is close; for large ones it overstates.
How long will my money take to double?
Divide 72 by the CAGR, the rule of 72. At 12% a year money doubles in about 6 years; at 8%, about 9; at 6%, about 12. It is a quick mental check: if someone promises to double your money in three years, they are claiming 24% a year, and that deserves hard questions.
Can CAGR be negative?
Yes. If ₹1 lakh fell to ₹80,000 over three years, the CAGR is about −7.2% a year. A negative CAGR over a short period is normal for equity; over a long period it means the investment genuinely failed. Look at the years before judging it.