CAGR Calculator India | FinanceAcademy

CAGR Calculator — Compound Annual Growth Rate Explained

CAGR (Compound Annual Growth Rate) is a reliable way to measure investment returns over time. Unlike simple returns or absolute returns, CAGR accounts for compounding — showing the steady annual rate at which your investment would have grown if it grew at a constant rate. It is used to compare mutual funds, stocks, real estate, and any investment vehicle.

12–13%

Nifty 50 10-year CAGR (historical average)

7.1%

PPF CAGR (tax-free, government guaranteed)

6.5–7.5%

Bank FD CAGR (fully taxable)

14–18%

Mid/small cap fund CAGR (10+ years)

📐 Formula & How It Works

CAGR = (End Value / Start Value)^(1/Years) − 1

Example: ₹1 lakh grew to ₹2.5 lakh in 5 years → CAGR = (2.5/1)^(1/5) − 1 = 20.11%

Reverse CAGR (to find future value): End Value = Start Value × (1 + CAGR)^Years

🛠️ How to Use This Calculator

Step 1: Select Mode 1 (Calculate CAGR) or Mode 2 (Calculate Future Value).
Step 2: Enter initial investment value and final value (or target CAGR for reverse calculation).
Step 3: Enter the number of years of investment.
Step 4: Instantly see CAGR percentage and comparison with benchmark returns.
Step 5: Compare your investment CAGR with Nifty 50, FD, PPF, and other benchmarks.

💡 Pro Tips

✓ Compare CAGR after inflation — a 10% CAGR with 6% inflation = only 3.77% real return.

✓ Use CAGR to compare investments of different durations on equal footing.

✓ Nifty 50 index fund CAGR beats 70% of actively managed large-cap funds over 10 years.

✓ Never compare returns using absolute % — a 100% return in 10 years is only 7.2% CAGR.

❓ Frequently Asked Questions

What is a good CAGR for mutual funds in India? +

A CAGR of 12–15% for large-cap equity funds and 14–18% for mid/small-cap funds over a 10+ year period is considered good in India. Index funds tracking Nifty 50 have delivered ~12–13% CAGR over the last 10 years.

Difference between CAGR and XIRR? +

CAGR is for lumpsum investments — one entry and one exit. XIRR is for irregular cash flows like SIP. For SIP returns, always use XIRR; for lumpsum, use CAGR.

What is Nifty 50 CAGR last 10 years? +

Nifty 50 has delivered approximately 12–14% CAGR over any rolling 10-year period. Specific recent periods may vary. Check Nifty historical data on NSE website for exact current figures.

How to calculate CAGR in Excel? +

Use: =((End_Value/Start_Value)^(1/Years))-1. Example: =((250000/100000)^(1/5))-1 gives 20.11%. You can also use the RATE function: =RATE(Years,0,-Start_Value,End_Value).

Can CAGR be negative? +

Yes. If your investment lost value, CAGR will be negative. Example: ₹1L invested, worth ₹70K after 3 years → CAGR = (0.7)^(1/3)−1 = −11.18%.

CAGR Calculator — Formula, Examples & Benchmarks

CAGR (Compound Annual Growth Rate) is the single most important metric for comparing investments. It answers: what constant annual return would produce the same final value? The formula is: CAGR = (Ending Value / Beginning Value)^(1/n) − 1, where n is years. If ₹1 lakh invested in 2015 became ₹3.5 lakh in 2025, the CAGR is (3.5)^(0.1) − 1 = 13.3%. This lets you compare a mutual fund's CAGR against FD rates, PPF returns, or property appreciation on a fair single-number basis.

Historical CAGR benchmarks for India: Nifty 50 = 12–14% over 10-year periods, Nifty Midcap 150 = 15–18%, Gold = 9–11%, Real Estate = 6–9% (city-dependent), PPF = 7.1% (current guaranteed), FD = 6–7%. These benchmarks help evaluate whether any investment is performing above or below expectations.