CAGR Calculator (2026) – Compound Annual Growth Rate Calculator
📈 Calculate Investment Annual Growth Rate Instantly
CAGR Calculator – Compound Annual Growth Rate
Initial Investment (₹) ₹1,00,000
Final Value (₹) ₹2,50,000
Investment Period (Years) 10 Years
Compound Annual Growth Rate
9.60%
Initial Investment₹1,00,000
Final Value₹2,50,000
Total Growth Amount₹1,50,000
Absolute Return150%
Investment Period10 Years
Your investment grew at 9.60% per year. This is comparable to large cap mutual fund returns.
Initial Investment vs Total Growth
Initial Investment
Total Growth
Year-wise Investment Growth Table
| Year | Investment Value | Growth from Initial | Annual Growth % | Progress |
|---|
What is CAGR? – Compound Annual Growth Rate Explained
CAGR (Compound Annual Growth Rate) is the rate at which an investment grows from its beginning value to its ending value over a specific time period, assuming that the profits are reinvested at the end of each year. It represents the smoothed annualized gain of an investment, eliminating the effect of volatility.
In simple words, CAGR answers this question: “If my investment grew steadily every year, what would be the annual growth rate?” It is the most widely used metric to compare investment performance across different asset classes, time periods, and fund categories in India.
Why is CAGR Important?
- Mutual Fund Comparison — AMFI and fund houses use CAGR to show fund performance over 1, 3, 5, and 10 year periods
- Stock Returns — Compare which stock gave better annualized returns over a period
- FD vs Equity — Compare guaranteed FD returns with equity market CAGR
- Business Growth — Companies use CAGR to show revenue, profit, and sales growth
- Real Estate — Calculate property value appreciation CAGR over years
- Goal Planning — Understand how much your investment needs to grow to meet financial goals
Key Characteristics of CAGR
- CAGR is a hypothetical rate — actual year-by-year growth may vary significantly
- It assumes compounding — profits reinvested each year
- CAGR only works for single lump sum investments — use XIRR for SIP/multiple cash flows
- It does not reflect volatility risk — two investments can have same CAGR but very different risk profiles
CAGR Formula & Step-by-Step Calculation
CAGR = (FV / PV)^(1/n) – 1
FV = Final Value of Investment
PV = Present Value (Initial Investment)
n = Number of Years
Result is in decimal — multiply by 100 to get percentage
FV = Final Value of Investment
PV = Present Value (Initial Investment)
n = Number of Years
Result is in decimal — multiply by 100 to get percentage
CAGR Calculation Examples:
Example 1: You invested ₹1,00,000 in a mutual fund in 2016. Current value in 2026 is ₹2,50,000.
CAGR = (2,50,000 / 1,00,000)^(1/10) – 1
= (2.5)^(0.1) – 1
= 1.0960 – 1
= 0.0960 = 9.60% per annum
= (2.5)^(0.1) – 1
= 1.0960 – 1
= 0.0960 = 9.60% per annum
Example 2: Nifty 50 was at 8,000 in 2016 and reached 23,000 in 2026.
CAGR = (23,000 / 8,000)^(1/10) – 1
= (2.875)^(0.1) – 1
= 1.1112 – 1
= 11.12% per annum
= (2.875)^(0.1) – 1
= 1.1112 – 1
= 11.12% per annum
How to Calculate CAGR Using This Calculator:
- Enter your Initial Investment — amount you invested originally
- Enter the Final Value — current or expected value of investment
- Enter Number of Years — time period of investment
- Click Calculate CAGR — get instant CAGR percentage with year-wise growth table
CAGR Examples – Mutual Funds, Stocks & Other Investments
Here are real-world CAGR examples to help you understand investment performance:
| Investment | Initial Value | Final Value | Period | CAGR |
|---|---|---|---|---|
| Nifty 50 Index | ₹8,000 | ₹23,000 | 10 years | 11.12% |
| Sensex | ₹25,000 | ₹75,000 | 10 years | 11.61% |
| SBI FD (5 years) | ₹1,00,000 | ₹1,41,478 | 5 years | 7.00% |
| Gold (MCX) | ₹45,000/10g | ₹75,000/10g | 5 years | 10.76% |
| Real Estate (Metro) | ₹50,00,000 | ₹80,00,000 | 7 years | 6.94% |
| PPF (15 years) | ₹1,00,000 | ₹3,17,217 | 15 years | 8.00% |
| Typical Large Cap Fund | ₹1,00,000 | ₹3,10,000 | 10 years | 12.00% |
| Typical Mid Cap Fund | ₹1,00,000 | ₹4,00,000 | 10 years | 14.87% |
*Values are approximate for illustration. Actual returns may vary.
CAGR at Different Growth Rates – ₹1 Lakh Investment
| CAGR Rate | 5 Years | 10 Years | 15 Years | 20 Years |
|---|---|---|---|---|
| 6% (FD/PPF) | ₹1,33,823 | ₹1,79,085 | ₹2,39,656 | ₹3,20,714 |
| 8% (Post Office) | ₹1,46,933 | ₹2,15,892 | ₹3,17,217 | ₹4,66,096 |
| 10% (Balanced Fund) | ₹1,61,051 | ₹2,59,374 | ₹4,17,725 | ₹6,72,750 |
| 12% (Large Cap) | ₹1,76,234 | ₹3,10,585 | ₹5,47,357 | ₹9,64,629 |
| 15% (Mid Cap) | ₹2,01,136 | ₹4,04,556 | ₹8,13,706 | ₹16,36,654 |
| 18% (Small Cap) | ₹2,28,776 | ₹5,23,384 | ₹11,97,373 | ₹27,39,302 |
CAGR vs Absolute Return vs XIRR – Key Differences
Understanding the difference between these three return metrics is crucial for evaluating investment performance correctly:
| Metric | Formula | Best Used For | Limitation |
|---|---|---|---|
| CAGR | (FV/PV)^(1/n) – 1 | Lump sum investments, comparing funds | Only for single cash flow |
| Absolute Return | (FV-PV)/PV x 100 | Short-term returns, quick comparison | Ignores time period |
| XIRR | Complex (Excel formula) | SIP investments, multiple cash flows | Needs Excel or financial calculator |
| TWRR | Complex calculation | Portfolio performance with deposits/withdrawals | Complex to calculate |
When to Use CAGR vs XIRR?
- Use CAGR when: You made a single lump sum investment and want to know annual growth rate. Example: ₹1 lakh invested in Nifty index fund 5 years ago.
- Use XIRR when: You invested monthly via SIP or made multiple investments at different times. XIRR gives more accurate return for SIP portfolios.
- Use Absolute Return when: Comparing very short-term investments (less than 1 year) where annualization doesn’t make sense.
CAGR vs Absolute Return Example:
Investment: ₹1,00,000 → ₹2,00,000 (100% absolute return)
- If achieved in 2 years: CAGR = 41.42% (very high)
- If achieved in 5 years: CAGR = 14.87% (good)
- If achieved in 10 years: CAGR = 7.18% (moderate)
- If achieved in 20 years: CAGR = 3.53% (poor)
Same 100% absolute return means completely different things depending on time period — this is why CAGR is more meaningful than absolute returns for comparison.
What is a Good CAGR for Investments in India?
What constitutes a “good” CAGR depends on the asset class, risk level, and investment horizon:
| Asset Class | Expected CAGR | Risk Level | Recommended For |
|---|---|---|---|
| Savings Account | 3% – 4% | Zero Risk | Emergency fund only |
| FD / RD | 6.5% – 8% | Zero Risk | Short-term goals, capital protection |
| PPF / NSC | 7% – 8% | Zero Risk | Long-term tax-saving goals |
| Debt Mutual Funds | 6% – 8% | Low Risk | 2-5 year goals |
| Balanced / Hybrid Funds | 9% – 12% | Medium Risk | 5-7 year goals |
| Nifty 50 / Index Funds | 10% – 13% | Medium-High Risk | 7+ year goals |
| Large Cap Mutual Funds | 11% – 14% | Medium-High Risk | 7+ year goals |
| Mid Cap Mutual Funds | 13% – 18% | High Risk | 10+ year goals |
| Small Cap Mutual Funds | 15% – 22% | Very High Risk | 10+ year goals |
| Direct Stocks | Variable | Very High Risk | Experienced investors only |
Rule of 72 – Quick CAGR Estimate
The Rule of 72 is a quick way to estimate how long it takes to double your investment at a given CAGR:
Years to Double = 72 / CAGR Rate
At 6% CAGR: Money doubles in 72/6 = 12 years
At 9% CAGR: Money doubles in 72/9 = 8 years
At 12% CAGR: Money doubles in 72/12 = 6 years
At 18% CAGR: Money doubles in 72/18 = 4 years
At 6% CAGR: Money doubles in 72/6 = 12 years
At 9% CAGR: Money doubles in 72/9 = 8 years
At 12% CAGR: Money doubles in 72/12 = 6 years
At 18% CAGR: Money doubles in 72/18 = 4 years
CAGR of Indian Markets & Investments in 2026
Here is the historical CAGR performance of major Indian investment options as of 2026:
| Index / Asset | 1 Year CAGR | 3 Year CAGR | 5 Year CAGR | 10 Year CAGR |
|---|---|---|---|---|
| Nifty 50 | ~12% | ~14% | ~15% | ~11% |
| BSE Sensex | ~12% | ~14% | ~15% | ~12% |
| Nifty Midcap 100 | ~18% | ~22% | ~20% | ~15% |
| Nifty Smallcap 100 | ~20% | ~25% | ~22% | ~13% |
| Gold (MCX) | ~18% | ~15% | ~12% | ~10% |
| Real Estate (Avg) | ~8% | ~10% | ~8% | ~7% |
| SBI FD (5 year) | 7.25% | 7.00% | 6.80% | 6.90% |
*CAGR figures are approximate based on historical data. Past performance does not guarantee future returns.
How to Use CAGR for Financial Goal Planning
- Set your goal: Need ₹50 lakhs in 15 years for child’s education
- Current savings: ₹5 lakhs available for investment today
- Required CAGR: (50,00,000/5,00,000)^(1/15) – 1 = 16.6% per annum
- Decision: Need mid/small cap exposure to achieve 16%+ CAGR — consider SIP in diversified equity funds
- Alternative: Invest ₹5 lakhs + monthly SIP to reduce required CAGR from a single investment
Use our SIP Calculator to plan monthly investments alongside lump sum for better goal achievement.
Frequently Asked Questions – CAGR Calculator
What is CAGR?
CAGR (Compound Annual Growth Rate) is the annualized growth rate of an investment over a specific period, assuming profits are reinvested each year. It is the most widely used metric to compare mutual fund performance, stock returns, and business revenue growth in India.
How to calculate CAGR?
CAGR = (Final Value / Initial Value)^(1/n) – 1. Example: ₹1 lakh grows to ₹2.5 lakhs in 10 years. CAGR = (2,50,000/1,00,000)^(1/10) – 1 = 9.60% per annum. Use our free CAGR calculator above for instant results.
What is a good CAGR for mutual funds in India?
Good CAGR benchmarks: Large cap funds 11-14%, Mid cap funds 13-18%, Small cap funds 15-22% over 10 years. A CAGR above 12% is generally considered good for equity investments. Always compare with benchmark index CAGR before evaluating a fund.
What is the difference between CAGR and XIRR?
CAGR works for single lump sum with one start and end date. XIRR handles multiple cash flows at different dates — ideal for SIP investments. For SIP mutual fund returns, always use XIRR (available in Excel). For lump sum, use CAGR. Check our XIRR Calculator.
Can CAGR be negative?
Yes. If Final Value is less than Initial Investment, CAGR is negative — indicating a loss. Example: ₹1 lakh invested becomes ₹80,000 after 3 years → CAGR = (80,000/1,00,000)^(1/3) – 1 = -7.17% per annum.
What is Sensex and Nifty 10 year CAGR?
BSE Sensex 10-year CAGR (2015-2025) is approximately 11-13%. Nifty 50 10-year CAGR is approximately 11-12%. Over 20 years, both indices have delivered 13-15% CAGR. These serve as good benchmarks for equity mutual fund performance evaluation.
How is CAGR different from absolute return?
Absolute return = total % gain without considering time. 100% absolute return over 5 years = 14.87% CAGR, but 100% over 20 years = only 3.53% CAGR. CAGR is more meaningful for comparison because it accounts for the time value of money.