CAGR Calculator — Measure True Investment Performance — India 2026
Calculate CAGR to understand the true annualized return of any investment. Compare performance across mutual funds stocks real estate and other asset.
CAGR or Compound Annual Growth Rate is the single most important metric for comparing investment performance. Unlike absolute returns which can be misleading CAGR gives you the smoothed annual rate of return that accounts for compounding. If someone tells you their investment doubled in 5 years the CAGR is 14.87% per year. If it tripled in 10 years the CAGR is 11.61%. This metric lets you compare any two investments on an equal footing regardless of tenure.
What is a good CAGR?
A good CAGR depends on the asset class and risk level. For equity mutual funds 12-15% CAGR over 5+ years is considered good. For debt funds 7-9% is good. For real estate 8-10% CAGR is respectable. Always compare CAGR against inflation (currently 5-6%) to understand real returns. Any investment delivering CAGR below inflation is actually losing purchasing power.
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CAGR Calculator
Understanding Your Investment Returns
This calculator projects your returns using compound interest, where your earnings generate their own earnings over time. The power of compounding means that even small regular investments can grow into substantial wealth over long periods. For example, investing just Rs 5,000 per month at 12% expected returns for 25 years can grow to over Rs 1 crore — of which only Rs 15 lakh is your own money and Rs 85 lakh is compounding returns. The key factors that determine your final corpus are: the amount invested, the rate of return, the duration of investment, and the frequency of compounding.
Important Considerations
Past returns do not guarantee future performance, especially for market-linked instruments like mutual funds and equities. The returns shown are estimates based on the rate you enter. Equity investments carry market risk but have historically delivered 12-15% CAGR over 15+ year periods in India. Fixed income options like PPF (7.1%) and FD (6-7.5%) offer lower but more predictable returns. Diversifying across asset classes — equity, debt, gold, and real estate — reduces overall portfolio risk while optimizing returns for your risk tolerance.
Key Information
| Parameter | Details |
|---|---|
| CAGR Formula | (Ending Value / Beginning Value)^(1/Years) - 1 |
| Nifty 50 CAGR (10 year) | 12% - 14% |
| Gold CAGR (10 year) | 8% - 10% |
| Real Estate CAGR (10 year) | 6% - 9% |
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Use Calculator NowFrequently Asked Questions
What is a good CAGR?
A good CAGR depends on the asset class and risk level. For equity mutual funds 12-15% CAGR over 5+ years is considered good. For debt funds 7-9% is good. For real estate 8-10% CAGR is respectable. Always compare CAGR against inflation (currently 5-6%) to understand real returns. Any investment delivering CAGR below inflation is actually losing purchasing power.
How is CAGR different from average returns?
Average returns simply add up annual returns and divide by years which can be misleading. For example if an investment gains 50% in year 1 and loses 33% in year 2 the average return is 8.5% but the CAGR is actually 0% because Rs 100 becomes Rs 150 then drops back to Rs 100. CAGR accounts for the compounding effect and gives the true growth rate.
Why do mutual funds show different return figures?
Mutual funds show absolute returns trailing returns and CAGR for different time periods. A fund showing 80% absolute returns may look better than one showing 50% but if the first is over 5 years (CAGR 12.5%) and the second is over 3 years (CAGR 14.5%) the second fund actually performed better on an annualized basis.
What is compound interest and why does it matter?
Compound interest means you earn interest on your interest, not just your principal. Over long periods, this creates exponential growth — even small regular investments can grow into substantial wealth over 15-25 years.
Is SIP better than lumpsum investment?
SIP invests a fixed amount monthly, averaging out market volatility through rupee cost averaging. Lumpsum works better when markets are low. For most investors, SIP builds discipline and removes the need to time the market.
How much should I invest monthly to become a crorepati?
At 12% expected returns, a monthly SIP of Rs 5,000 for 30 years grows to approximately Rs 1.76 crore. Increasing your SIP by 10% annually makes the corpus even larger. Start early, stay consistent.
Are investment returns taxable?
PPF returns are tax-free. Equity mutual fund LTCG above Rs 1.25 lakh/year is taxed at 12.5%. FD interest is taxed at your slab rate. NPS offers an additional Rs 50,000 deduction under 80CCD(1B).
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Last updated: March 2026