CAGR Calculator

CAGR Calculator India – Calculate Annual Growth Rate of Investment (2026)

Enter your beginning value, ending value & time period to instantly calculate your compound annual growth rate.

Enter Investment Details

₹50,000
₹100,000
5 yr
CAGR
14.87%
100.0% absolute return over 5 years
Initial Value₹50,000Starting investment
Total Gain₹50,000100% growth
Final Value₹100,0002.0x multiplier

Investment Growth Over Time

💡 Smart Insights

📈Your CAGR beats Nifty 50 average (12%) by 2.9%
💰Your investment grew 2.0x — a total gain of ₹50.0K
🚀At 14.8698% CAGR, ₹1L becomes ₹2.00 L in 5 years

Year-by-Year Investment Growth

YearInvestment ValueTotal Gain
1₹57,435₹7,435
2₹65,975₹15,975
3₹75,786₹25,786
4₹87,055₹37,055
5₹100,000₹50,000

How Your CAGR Compares

Asset ClassTypical CAGRYour Investment
Small/Mid Cap Mutual Funds14–18%14.87%
Large Cap / Nifty 5010–13%14.87%
Gold (INR)10–12%14.87%
Fixed Deposit6–9%14.87%
Savings Account3–4%14.87%

What is CAGR (Compound Annual Growth Rate)?

CAGR (Compound Annual Growth Rate) represents the rate at which an investment would have grown if it grew at a steady rate annually. Unlike absolute returns, CAGR accounts for the effect of compounding and the time period — making it the most reliable metric for comparing mutual funds, stocks, and portfolios over different time periods.

CAGR Formula – How It Is Calculated

CAGR is calculated using:

CAGR = (Ending Value / Beginning Value)^(1/n) − 1

Where n = number of years. The result is expressed as a percentage.

Real-Life CAGR Examples

Example 1: Investment grew from ₹50,000 to ₹1,00,000 in 5 years → CAGR = 14.87%, Absolute Return = 100%.

Example 2: ₹1,00,000 grew to ₹5,00,000 in 15 years → CAGR = 11.59% (similar to a good large-cap mutual fund).

Example 3: Nifty 50 from 2004 to 2024: approximately ₹1,000 → ₹10,000 → CAGR ≈ 12.2%.

CAGR vs Absolute Return — What's the Difference?

Absolute return shows total percentage gain regardless of time. CAGR normalises it per year. A 100% absolute return over 2 years is a 41.4% CAGR — very different from 100% over 10 years (7.2% CAGR). Always use CAGR when comparing investments held for different durations.

Benefits of Using CAGR for Investment Analysis

  • Normalised Comparison: Compare investments held for 2 years vs 10 years on equal footing.
  • Smooths Volatility: Removes the noise of year-to-year fluctuations to show the real trend.
  • Mutual Fund Evaluation: The standard metric used in all SEBI-mandated fund fact sheets.
  • Business Growth Metric: Used to measure revenue, profit, and customer growth in business analysis.
  • Portfolio Benchmarking: Compare your portfolio's CAGR against Nifty 50, Sensex or category averages.

CAGR Benchmarks for Indian Investors 2026

Nifty 50: ~12–13% CAGR over 20 years. Sensex: ~12–14% CAGR since inception. Gold (INR): ~10–12% CAGR over 20 years. Real Estate: 7–12% depending on location. Fixed Deposits: 6–9%. Savings Account: 3–4%. A CAGR above 12% in India is generally considered excellent for most asset classes.

How to Use This CAGR Calculator

Enter your beginning investment value (what you originally invested), your ending value (current or final value), and the number of years you held the investment. The calculator will instantly compute your CAGR, absolute return, and total gain — helping you evaluate whether your investment has performed well compared to benchmarks.

Nifty 50 & Sensex CAGR – Historical Returns Data (2006–2026)

How have India's major indices performed over different time periods? Here's the historical CAGR data for Nifty 50 and Sensex:

PeriodNifty 50 CAGRSensex CAGRFD Return (avg)Gold (INR) CAGR
5 Years (2021–2026)~14.5%~14.2%~6.5%~12.8%
10 Years (2016–2026)~12.8%~12.5%~6.8%~11.5%
15 Years (2011–2026)~12.2%~12.0%~7.0%~10.8%
20 Years (2006–2026)~12.5%~12.3%~7.2%~11.2%

Key takeaway: Over any 10+ year period, Nifty 50 has delivered approximately 12–13% CAGR, consistently outperforming FDs and matching or beating gold returns. This makes index fund SIP one of the best long-term wealth creation strategies. Calculate your SIP returns →

FAQs — CAGR Calculator India

A CAGR of 12–15% is considered good for equity mutual funds in India over a long-term horizon (10+ years). Large-cap funds typically deliver 10–13%, while mid-cap and small-cap funds may deliver 14–18% with higher volatility.
Absolute return tells you the total percentage gain regardless of time. CAGR normalises it to an annual rate. A 200% absolute return over 10 years is only about 11.6% CAGR — very different from 200% in 2 years (73.2% CAGR).
Nifty 50 has delivered approximately 12–13% CAGR over the last 20 years (2004–2024), though individual years vary significantly from -50% to +70%. This makes it a benchmark for evaluating mutual fund performance.
Yes. If your ending value is less than your beginning value, CAGR will be negative. For example, ₹1,00,000 invested falling to ₹70,000 in 5 years gives a CAGR of -6.9%, indicating capital erosion.
CAGR is the perfect tool for comparing investments of different time periods. If Investment A grew from ₹1 lakh to ₹2 lakh in 5 years (CAGR: 14.87%) and Investment B grew from ₹1 lakh to ₹3 lakh in 10 years (CAGR: 11.61%), Investment A actually performed better on an annualised basis despite a lower absolute return.
CAGR = (Ending Value / Beginning Value)^(1/n) − 1, where n = number of years. For example, ₹50,000 growing to ₹1,00,000 in 5 years: CAGR = (1,00,000/50,000)^(1/5) − 1 = 2^0.2 − 1 = 14.87%.
CAGR measures the smoothed annual growth rate of a single investment from start to end. IRR (Internal Rate of Return) is more comprehensive — it accounts for multiple cash flows (like SIP investments) at different time periods. For a single lump sum investment, CAGR and IRR are equivalent.
Indian real estate has historically delivered 7–12% CAGR in major cities over the long term, varying significantly by location. Prime locations in Mumbai, Delhi, and Bangalore have seen 10–15% CAGR over 15–20 years. However, real estate has lower liquidity and requires higher capital compared to mutual funds.
Businesses use CAGR to measure revenue growth, profit growth, and market share expansion over multiple years. A company with 20%+ revenue CAGR over 5 years is considered a high-growth company. CAGR is also used in business valuations and investor presentations.
Gold has delivered approximately 10–12% CAGR in India over the last 20 years (2004–2024) in INR terms, partly due to currency depreciation. However, gold does not generate income and has longer periods of underperformance compared to equity markets.

Related Calculators & Articles

SIP Calculator India – Monthly Mutual Fund Investment Returns →EMI Calculator India – Home Loan & Car Loan EMI →FD Calculator India – Fixed Deposit Maturity Calculator →Lumpsum Calculator – One-Time Investment Returns →SIP vs FD 2026 – Which Investment is Better? →

Disclaimer: CAGR values shown are based on the inputs provided and historical data is indicative only. Past performance does not guarantee future results. This calculator is for informational purposes only and does not constitute investment advice. Please consult a SEBI-registered financial advisor before making investment decisions.