CAGR Calculator India 2026
Calculate Compound Annual Growth Rate for your investments. Find the true annualized return of stocks, mutual funds, real estate, or any investment over time.
14.87%
CAGR
100%
Absolute Return
2.0x
Multiplier
5 yrs
Time Period
Find Your CAGR
âš
âš1Kâš1 Cr
âš
âš1Kâš10 Cr
Years
CAGR Formula
CAGR = (FV/PV)1/n - 1
FV (Final Value)âš2.00L
PV (Initial Value)âš1.00L
n (Years)5
Compound Annual Growth Rate
14.87%
Your investment grew at 14.87% per year on average
Starting Amountâš1.00L
Ending Amountâš2.00L
Total Profit+âš1.00L
Wealth Multiplier2.00x
Investment Growth Over Time
Year-wise Projection
| Year | Value | Gain from Start | Growth % |
|---|---|---|---|
| Start | âš1.00L | â | â |
| Year 1 | âš1.15L | +âš14.9K | 14.9% |
| Year 2 | âš1.32L | +âš32.0K | 32.0% |
| Year 3 | âš1.52L | +âš51.6K | 51.6% |
| Year 4 | âš1.74L | +âš74.1K | 74.1% |
| Year 5 | âš2.00L | +âš1.00L | 100.0% |
Historical CAGR by Asset Class (India, 20+ Years)
đ
Sensex
13.5%
đĨ
Gold
10.2%
đ
Real Estate
8-12%
đĻ
FD/PPF
7-8%
*Historical data for reference. Past performance doesn't guarantee future returns. Equity returns assume dividend reinvestment.
CAGR vs Other Return Metrics
| Metric | What It Measures | Best For |
|---|---|---|
| CAGR | Smoothed annual return with compounding | Comparing investments across different periods |
| Absolute Return | Total gain from start to end | Quick snapshot of total profit |
| XIRR | Returns with irregular cash flows | SIP investments with varying amounts |
| Rolling Returns | Returns over rolling time windows | Understanding return consistency |
Frequently Asked Questions
What is CAGR and why is it important?
CAGR (Compound Annual Growth Rate) is the average annual growth rate of an investment over a specified period, assuming profits are reinvested each year. Unlike simple average returns, CAGR accounts for the compounding effect, making it the most accurate way to compare investments across different time periods. For example, Nifty 50 has delivered approximately 12-14% CAGR over 20 years.
How is CAGR different from absolute returns?
Absolute return shows the total percentage gain (e.g., âš1L becoming âš2L is 100% absolute return). CAGR shows the annualized rate needed to achieve that growth with compounding. An investment doubling in 5 years (CAGR 14.87%) is better than one doubling in 10 years (CAGR 7.18%), even though both have the same 100% absolute return.
What is considered a good CAGR for investments in India?
For Indian equities (Nifty/Sensex), 12-15% CAGR is good over 10+ years. Top-performing mutual funds may deliver 15-20% CAGR. Real estate typically gives 8-12% CAGR. Fixed deposits and PPF provide 6-8% CAGR. Always compare CAGR with inflation (5-6% in India) to calculate real returns.
Can CAGR be negative?
Yes, CAGR can be negative when the final value is less than the initial value, indicating an investment loss. For example, if âš1 lakh becomes âš80,000 over 2 years, the CAGR would be approximately -10.56%. Negative CAGR is common in bear markets or poorly performing investments.
Is CAGR same as average annual return?
No, they're different. Average return is the arithmetic mean of yearly returns, while CAGR is the geometric mean. If Year 1 gave +50% and Year 2 gave -25%, the average return is 12.5% but CAGR is only 6.07%. CAGR is more accurate as it reflects the actual ending value.
How do I use CAGR to compare mutual funds?
When comparing mutual funds, always look at CAGR over the same time periods (3Y, 5Y, 10Y). A fund with 15% 5-year CAGR is better than one with 12% CAGR. But also consider: (1) risk-adjusted returns using Sharpe ratio, (2) category benchmark comparison, and (3) consistency of returns across market cycles.
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