Calculate CAGR from start and end values, find future value at a target CAGR, or reverse-calculate the CAGR your SIP has delivered. Includes Rule of 72, growth timeline, and asset class benchmarks.
Vikash RoyalARN-356458 B.E. | MBA Finance | NISM Certified | 7+ Years in Finance
📈 CAGR Growth Table — ₹1 Lakh Grows to How Much?
How ₹1,00,000 invested as lumpsum grows at different CAGR rates over different time horizons. Shows the dramatic impact of even 2–3% extra CAGR over long periods.
CAGR Rate
5 Years
10 Years
15 Years
20 Years
25 Years
30 Years
6% (FD / Debt)
₹1.34 L
₹1.79 L
₹2.40 L
₹3.21 L
₹4.29 L
₹5.74 L
8% (EPF / PPF)
₹1.47 L
₹2.16 L
₹3.17 L
₹4.66 L
₹6.85 L
₹10.06 L
10% (Hybrid MF)
₹1.61 L
₹2.59 L
₹4.18 L
₹6.73 L
₹10.83 L
₹17.45 L
12% (Large Cap)
₹1.76 L
₹3.11 L
₹5.47 L
₹9.65 L
₹17.00 L
₹29.96 L
15% (Mid Cap)
₹2.01 L
₹4.05 L
₹8.14 L
₹16.37 L
₹32.92 L
₹66.21 L
18% (Small Cap)
₹2.29 L
₹5.23 L
₹11.97 L
₹27.39 L
₹62.67 L
₹1.43 Cr
20% (Top Stocks)
₹2.49 L
₹6.19 L
₹15.41 L
₹38.34 L
₹95.40 L
₹2.37 Cr
25% (Multi-bagger)
₹3.05 L
₹9.31 L
₹28.42 L
₹86.74 L
₹2.65 Cr
₹8.08 Cr
The difference between 12% and 15% CAGR over 30 years: ₹29.96L vs ₹66.21L — more than double from just 3% extra annual return. This is why choosing the right mutual fund (that consistently beats its benchmark) is one of the most important financial decisions. Past CAGR does not guarantee future returns — equity CAGR varies significantly year-to-year. Use CAGR for long-term (10+ years) assessment only.
🆕 Historical CAGR by Asset Class — India
Long-term CAGR of major asset classes in India. Use these as benchmarks to evaluate whether your investments are performing as expected.
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Nifty 50 (Index)
~13%
20-year CAGR
Large-cap benchmark. SIP XIRR typically 12–14% over 10+ years. Low cost index funds best for most investors.
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Nifty Midcap 100
~16%
15-year CAGR
Higher returns than large-cap but 2x+ volatility. Suitable for 10+ year SIP horizon. Significant drawdowns in bear markets.
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Active Large-Cap MF
~12–14%
10-year CAGR
Best funds beat Nifty by 1–3%. Most fail to consistently outperform. SEBI alpha data shows only ~30% beat benchmark over 5 years.
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Real Estate
~8–10%
15-year CAGR
Highly location-dependent. Metro tier-1 cities outperform. Illiquid, high transaction costs. Rental yield: 2–4% additional.
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Gold
~10–11%
20-year CAGR
Hedge against inflation and currency depreciation. No yield/dividend. Best held as 5–10% of portfolio via SGB or Gold ETF.
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PPF / EPF
7.1–8.25%
Guaranteed (EEE)
Government-guaranteed, completely tax-free. EPF at 8.25% is the best guaranteed rate. Ideal for the debt/safe portion of portfolio.
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FD / Debt MF
~6–7.5%
Current rates
Lowest risk, fully liquid (debt MF). FD interest fully taxable at slab. Post-tax yield at 30% slab: ~4.4–5.2%. Inflation barely beats or loses.
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Crypto (Bitcoin)
Very High / Volatile
5-year CAGR varies
Extremely volatile — 80%+ drawdowns common. 30% flat tax in India. Suitable only as a very small speculative allocation for high-risk investors.
📋 CAGR vs Absolute Return — Why CAGR Is the Right Metric
Same absolute return can mean very different things depending on time taken. CAGR normalises for time — use it to compare investments of different durations.
Investment
Invested (₹)
Current Value (₹)
Absolute Return
Years Held
CAGR
Verdict
Stock A
₹1,00,000
₹2,00,000
100%
10 years
7.18%
Underperformed FD
Stock B
₹1,00,000
₹2,00,000
100%
5 years
14.87%
Excellent
Stock C
₹1,00,000
₹2,00,000
100%
3 years
26.00%
Outstanding
Mutual Fund D
₹5,00,000
₹8,00,000
60%
4 years
12.47%
Good
Property E
₹50,00,000
₹90,00,000
80%
8 years
7.74%
Moderate
Gold F
₹3,00,000
₹7,50,000
150%
10 years
9.59%
Good
FD G
₹2,00,000
₹3,20,000
60%
8 years
6.07%
Below inflation
Stock A and Stock B have identical absolute returns (100%) but CAGR of 7.18% vs 14.87% — Stock A actually underperformed a fixed deposit while Stock B is excellent. This is why absolute return % without time context is meaningless. Always use CAGR when comparing investments of different holding periods. For SIP investments, use XIRR (which this calculator approximates in SIP mode).
💡 4 Smart Strategies to Maximise CAGR Returns
The difference between a 10% and 14% CAGR portfolio over 20 years is massive — these four principles help you tilt the odds in your favour.
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Time in Market Beats Timing the Market
The single biggest driver of CAGR is time — not stock selection or timing. ₹1L invested at 12% CAGR: 15 years = ₹5.47L; 20 years = ₹9.65L; 25 years = ₹17L. The last 5 years add more than the first 15 combined — that's compounding. Every year you delay starting reduces your terminal wealth dramatically. Starting a SIP at 25 vs 30 with same contributions and CAGR produces 60%+ more corpus by retirement. Start now, stay invested, never pause.
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Cost Is a Silent CAGR Killer
Every 1% in extra expense ratio destroys 1% of CAGR permanently. A fund with 1.5% expense ratio giving 13% gross returns delivers 11.5% net CAGR. An index fund at 0.1% expense gives 12.9% net CAGR. Over 20 years on ₹10L: 11.5% CAGR = ₹88L vs 12.9% CAGR = ₹1.13Cr — a ₹25L difference from 1.4% cost difference. Use direct plans (not regular/broker plans) to save 0.5–1.5% annually. For large-cap exposure, index funds almost always beat expensive active funds net of costs.
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Never Interrupt Compounding — CAGR Relies on Reinvestment
CAGR assumes all returns are reinvested. Every withdrawal — even small ones — resets the compounding clock on that portion. This is why growth-option funds (IDCW reinvest) beat dividend-payout options by 15–25% over 10 years. Choose growth option for all long-term SIPs. Similarly, SIP step-up (increasing SIP by 10% annually) dramatically improves CAGR on invested capital — a ₹10,000/month SIP stepped up 10% annually produces 50% more corpus than flat SIP over 15 years at the same fund CAGR.
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Don't Chase Recent High CAGR — Reversion to Mean Is Real
A fund showing 35% CAGR over 3 years will almost certainly mean-revert. Top-performing funds of any 3-year period are rarely top performers of the next 3-year period. Chasing recent CAGR leads to buying high and selling low — the most reliable way to destroy wealth. Instead: choose funds with consistent 10-year CAGR relative to their benchmark, low tracking error for index funds, experienced fund managers with clear investment philosophy. 12–15% CAGR consistently over 15+ years in equity is elite performance.
❓ CAGR Calculator — Frequently Asked Questions
Most searched CAGR questions — answered with formulas and real examples.
CAGR (Compound Annual Growth Rate) is the rate at which an investment would have grown from beginning value to ending value if it grew at a steady annual rate with returns compounded annually.
Step-by-step example:
Invested ₹1,00,000 in Jan 2015, now worth ₹3,50,000 in Jan 2025 (10 years):
CAGR = (3,50,000 ÷ 1,00,000) ^ (1/10) − 1
CAGR = (3.5) ^ (0.1) − 1
CAGR = 1.1332 − 1 = 13.32% p.a.
This means the investment grew at a steady 13.32% per year to reach ₹3.5L from ₹1L in 10 years — even though the actual year-by-year returns were never exactly 13.32%.
For SIP (Systematic Investment Plan), the correct measure is XIRR (Extended Internal Rate of Return) — not simple CAGR — because money is invested at different points in time.
XIRR is the rate that makes the Net Present Value of all cash flows equal to zero. In simpler terms, it's the annualised return accounting for the timing of each monthly SIP investment.
Approximate XIRR formula for SIP:
XIRR ≈ r where: PMT × [(1+r)^n − 1] / r × (1+r)^(1/12) ≈ Maturity Value
Example: ₹10,000/month SIP, 10 years (₹12L invested), maturity value ₹23L:
XIRR ≈ 13.5% p.a.
Use the SIP XIRR mode in the calculator above — it solves for XIRR using Newton-Raphson iteration for accuracy. XIRR = CAGR for lumpsum; for SIP, XIRR is more meaningful.
Absolute Return = (Current Value − Invested) ÷ Invested × 100 — does not account for time. CAGR = annualised return — normalises for time so investments can be compared.
Why CAGR matters more:
Investment A: ₹1L → ₹2L in 10 years = 100% absolute return, CAGR = 7.18%
Investment B: ₹1L → ₹2L in 4 years = 100% absolute return, CAGR = 18.92%
Same absolute return — but Investment B is 2.6× better in annualised terms. Investment A (7.18% CAGR) is actually worse than a savings account! Always use CAGR when comparing investments of different holding periods.
Rule of thumb: Absolute return is useful only for investments held for under 1 year. For everything else, use CAGR or XIRR.
Good CAGR benchmarks (10-year returns, 2025):
• Large-cap / Index funds: 12–14% = good; 15%+ = excellent
• Mid-cap equity funds: 15–18% = good; 18%+ = excellent
• Small-cap funds: 16–20% = good (high risk)
• Flexi-cap / Multi-cap: 13–16% = good
• Hybrid / Balanced: 10–13% = good for moderate risk
• Debt funds: 6–8% = good
• Index funds (Nifty 50): ~12–13% CAGR (10-year)
The real test: Does the fund beat its benchmark index consistently? Active funds that fail to beat their benchmark over 5+ years are not worth the higher expense ratio — switch to index funds. Only about 30% of active large-cap funds beat Nifty 50 over 5-year periods, per SPIVA India data.
Rule of 72: Years to double = 72 ÷ CAGR%
Quick doubling time calculator:
• 6% CAGR → doubles every 12 years
• 8% CAGR → doubles every 9 years
• 10% CAGR → doubles every 7.2 years
• 12% CAGR → doubles every 6 years
• 15% CAGR → doubles every 4.8 years
• 18% CAGR → doubles every 4 years
• 24% CAGR → doubles every 3 years
Practical use: ₹5L invested at 12% CAGR (Nifty 50 level): doubles to ₹10L in 6 years, ₹20L in 12 years, ₹40L in 18 years, ₹80L in 24 years, ₹1.6Cr in 30 years — all from ₹5L one-time investment with zero additional contribution. Time is the most powerful variable.
Historical Nifty 50 CAGR (approximate, as of 2025):
SIP XIRR into Nifty 50 (10-year monthly SIP): ~12–14% p.a. — SIP XIRR tends to be slightly lower than lumpsum CAGR due to higher units purchased early at lower prices.
Post-tax CAGR: LTCG tax of 12.5% (above ₹1.25L/year exemption) reduces net returns. Effective post-tax CAGR for Nifty 50 over 10 years: approximately 11–12% for most investors. Still far superior to debt instruments post-tax.
Yes — negative CAGR means the investment has lost value on an annualised basis.
Formula: If Ending Value < Beginning Value:
Negative CAGR = (Ending Value ÷ Beginning Value) ^ (1/Years) − 1 = negative number
Example: ₹1,00,000 invested, now ₹65,000 after 5 years:
CAGR = (0.65)^(0.2) − 1 = 0.918 − 1 = −8.2% p.a.
When does negative CAGR occur?
• Individual stocks (especially mid/small cap) in bear markets or failed businesses
• Sectoral funds (pharma, infra, IT) during sector downturns
• Any investment bought at a peak and measured at a trough
• Crypto during bear cycles
Negative CAGR over 5+ years in a diversified equity fund is very rare historically in India — Nifty 50 has never had a negative 10-year CAGR. But individual stocks, sector funds, and concentrated portfolios can absolutely deliver sustained negative CAGR.
📈 Build a Portfolio That Consistently Beats Benchmark CAGR
Knowing your current CAGR is the first step. Building a portfolio that consistently delivers 13–16% CAGR over 15+ years — with the right mix of equity, debt, and gold — requires disciplined fund selection, low costs, and tax-smart withdrawals. Vikash Royal will design a personalised mutual fund portfolio tailored to your goals, risk profile, and time horizon. SEBI-Registered. ARN: ARN-356458
