CAGR Calculator — India (₹)

Calculate the Compound Annual Growth Rate of any investment — stocks, mutual funds, real estate, or savings. Compare your actual returns against market benchmarks like Nifty 50.

📈 CAGR Details
📐 CAGR FormulaCAGR = (End Value / Start Value)^(1/n) − 1
where n = number of years

Why CAGR? Unlike absolute returns, CAGR accounts for compounding and gives a standardised annualised return rate.
CAGR14.87% p.a.
Absolute Return100.0%
Total Gain+₹1,00,000
Over 5 Years₹1,00,000 → ₹2,00,000
🏆 Benchmark Comparison
FD (~7%)₹1,40,255 (✅ You beat this)
PPF (7.1%)₹1,40,912 (✅ You beat this)
Nifty 50 (~12%)₹1,76,234 (✅ You beat this)
Small Cap (~15%)₹2,01,136 (❌ Below this)

What is CAGR (Compound Annual Growth Rate)?

CAGR (Compound Annual Growth Rate) is the rate at which an investment grows from its beginning value to its ending value over a period, assuming all returns are reinvested. It is the most accurate way to compare investment performance across different time periods because it smooths out year-by-year volatility.

For example, if you invested ₹1 lakh in a mutual fund in 2015 and it grew to ₹3.1 lakh by 2025, the CAGR is (3.1)^(1/10) – 1 = 12% per year. This tells you clearly how your fund performed annually, regardless of whether it was up 30% one year and down 10% the next.

How to Use This CAGR Calculator

  • Calculate CAGR mode: Enter the starting investment value, ending value, and number of years. The calculator gives you the exact annual return rate.
  • Target Amount mode: Enter your starting amount, desired CAGR, and years to find out what your investment will be worth in the future.
  • Benchmark comparison: The calculator automatically shows how your CAGR compares to FD (~7%), PPF (7.1%), Nifty 50 (~12%), and Small Cap (~15%).
  • Interpreting results: If your CAGR is above the Nifty 50 benchmark, your fund manager has outperformed the index. Below Nifty means an index fund would have been better.

Key Factors That Affect CAGR in India

  • Asset Class: Equity mutual funds (12–18% historical CAGR), real estate (8–12%), gold (8–10%), FD (6.5–7.5%), PPF (7.1%), savings account (3–4%).
  • Time Horizon: The Nifty 50 has delivered negative CAGR over 1-year periods but has never given negative CAGR over any 15-year period in history. Longer duration stabilises equity CAGR.
  • Fund Selection: Active funds may beat or underperform the index. Index funds guarantee the market CAGR minus a small expense ratio (0.1–0.5%).
  • Inflation: Real CAGR = Nominal CAGR – Inflation Rate. If your FD earns 7% but inflation is 6%, your real CAGR is only 1%. Equity historically delivers 6–8% real CAGR.

Tips to Improve Your Investment CAGR

  • Compare against benchmark: Don't celebrate 10% returns without checking if Nifty 50 gave 14% in the same period. CAGR only matters relative to alternatives.
  • Switch underperforming funds: If a fund delivers <10% CAGR over 5+ years while Nifty delivers 14%, switch to a Nifty 50 index fund.
  • Factor in expense ratio: A 2% expense ratio reduces your CAGR by 2% every year. Over 20 years on ₹1L invested at 14% vs 12% (after expense ratio), the difference is ₹7+ lakh.
  • Diversify for risk-adjusted CAGR: A mix of equity (70%), gold (10%), and debt (20%) can deliver 11–12% CAGR with lower volatility than 100% equity.

Disclaimer: CAGR calculations are mathematical and do not predict future returns. Market investments are subject to risk. Past CAGR does not guarantee future performance.