π Compound Annual Growth
CAGR Calculator
Measure the True Annual Growth Rate of Any Investment
Calculate CAGR for any investment, find future value from a target CAGR, or determine the CAGR needed to reach a financial goal. Includes Rule of 72, reverse CAGR, and multi-asset comparison.
CAGR FormulaFuture ValueReverse CAGR
Rule of 72Goal CAGRAsset Comparison
PRESETS:
Calculate CAGR
Initial Investment Value
Starting value / purchase price
βΉ
βΉ1KβΉ1Cr
Final / Current Value
End value / current market price
βΉ
βΉ1KβΉ1Cr
Investment Duration
Number of years held
yr
0.5 yr50 yrs
Initial Investment
Amount you invest today
βΉ
βΉ10KβΉ1Cr
Expected CAGR
Annual compounding growth rate
%
0.5%50%
Investment Duration
Years to stay invested
yr
1 yr50 yrs
Current Investment Value
How much you have today
βΉ
βΉ10KβΉ1Cr
Target / Goal Value
How much you want to reach
βΉ
βΉ1LβΉ10Cr
Time Available
Years to achieve the goal
yr
1 yr50 yrs
Investment Amount
Same amount across all assets
βΉ
βΉ10KβΉ1Cr
Investment Duration
Years across all assets
yr
1 yr50 yrs
Asset CAGRs (editable)
π Equity / Index
%
π₯ Gold
%
π’ Fixed Deposit
%
π Real Estate
%
CAGR Result
π
CAGR
β
β
Initial Value
β
β
Final Value
β
β
Wealth Breakdown
β
gain
Invested
βWealth Gained
βGrowth Multiple
ββ‘ Rule of 72 β Doubling Times
Initial Value
β
β
Final Value
β
β
Absolute Gain
β
β
CAGR
β
β
Year-by-Year Growth Trajectory
Invested
Corpus
Wealth Gain
π Year-by-Year Breakdown
What is CAGR (Compound Annual Growth Rate)?
CAGR is the annualised rate at which an investment grows from its initial value to its final value over a given period, assuming all returns are reinvested and growth is compounded annually. It smooths out year-to-year volatility to give you a single, comparable growth rate β the standard benchmark for evaluating investments.
CAGR = (Final Value Γ· Initial Value)^(1 Γ· Years) β 1
Future Value = Initial Value Γ (1 + CAGR)^Years
Required CAGR = (Target Γ· Current)^(1 Γ· Years) β 1
Doubling Time (Rule of 72) = 72 Γ· CAGR %
Future Value = Initial Value Γ (1 + CAGR)^Years
Required CAGR = (Target Γ· Current)^(1 Γ· Years) β 1
Doubling Time (Rule of 72) = 72 Γ· CAGR %
CAGR of Major Indian Asset Classes (Historical)
| Asset Class | 10-Year CAGR | 20-Year CAGR | Risk |
|---|---|---|---|
| Sensex / Nifty 50 | 12β14% | 13β15% | High |
| Nifty Midcap 150 | 14β17% | 15β18% | Very High |
| Gold (INR) | 9β11% | 11β13% | Medium |
| Real Estate (Metro) | 6β10% | 8β11% | Medium |
| Fixed Deposit | 6β7.5% | 6.5β8% | Very Low |
| PPF | 7β8% | 7.5β8.5% | Very Low |
| Inflation (CPI) | 5β6% | 6β7% | β |
Rule of 72 β How Fast Does Money Double?
| CAGR | Years to Double | βΉ1L in 30 years |
|---|---|---|
| 4% (Savings) | 18 years | βΉ3.24L (3.2Γ) |
| 7% (FD) | 10.3 years | βΉ7.61L (7.6Γ) |
| 10% (Balanced) | 7.2 years | βΉ17.45L (17.4Γ) |
| 12% (Large Cap) | 6 years | βΉ29.96L (30Γ) |
| 15% (Mid Cap) | 4.8 years | βΉ66.21L (66Γ) |
| 18% (Small Cap) | 4 years | βΉ1.43Cr (143Γ) |
Frequently Asked Questions
Is a 12% CAGR good for equity mutual funds?βΌ
Yes β 12% CAGR matches the Nifty 50 long-term historical average and is considered a solid benchmark for large-cap equity funds. After adjusting for 6% inflation, the real CAGR is approximately 5.66%, doubling your purchasing power every ~12.7 years. Mid-cap funds historically deliver 15β18% CAGR, while small-cap funds may reach 18β22% with significantly higher volatility.
Why does CAGR of the same fund differ across websites?βΌ
CAGR is highly sensitive to start and end dates. A fund shows 15% CAGR from a market bottom but only 8% from a market peak. Always look at rolling CAGR (calculated across many start dates) rather than a single point-to-point figure. Most platforms display 1/3/5/10-year CAGR using todayβs NAV vs NAV exactly N years ago.
What is the difference between CAGR and XIRR?βΌ
CAGR requires a single lumpsum investment with a known start and end value. XIRR handles multiple cash flows at different dates β such as monthly SIPs, partial redemptions, and dividend reinvestments. For SIP investments, always use XIRR. For a one-time lumpsum, CAGR is sufficient and easier to interpret.
How do I use CAGR to set financial goals?βΌ
Use the Goal CAGR tab above. Enter current savings, target corpus, and years available β the calculator shows the required CAGR. If required CAGR is below 8%, debt funds work. 10β14% requires equity (large-cap/index funds). Above 14% needs mid/small-cap exposure. Above 20% is extremely aggressive and may require reviewing the goal or timeline instead.
Can CAGR be negative?βΌ
Yes β a negative CAGR means your investment lost value over the period. For example, if βΉ1 lakh became βΉ80,000 in 3 years, the CAGR is -7.1%. Negative CAGR happens during prolonged bear markets or sector-specific downturns. This is why diversification and long holding periods (10+ years) are critical for equity β historically, Nifty 50 has never delivered negative 10-year CAGR.
π Compound Annual Growth
CAGR Calculator
Measure the True Annual Growth Rate of Any Investment
Calculate CAGR for any investment, find future value from a target CAGR, or determine the CAGR needed to reach a financial goal. Includes Rule of 72, reverse CAGR, and multi-asset comparison.
CAGR FormulaFuture ValueReverse CAGR
Rule of 72Goal CAGRAsset Comparison
PRESETS:
Calculate CAGR
Initial Investment Value
Starting value / purchase price
βΉ
βΉ1KβΉ1Cr
Final / Current Value
End value / current market price
βΉ
βΉ1KβΉ1Cr
Investment Duration
Number of years held
yr
0.5 yr50 yrs
Initial Investment
Amount you invest today
βΉ
βΉ10KβΉ1Cr
Expected CAGR
Annual compounding growth rate
%
0.5%50%
Investment Duration
Years to stay invested
yr
1 yr50 yrs
Current Investment Value
How much you have today
βΉ
βΉ10KβΉ1Cr
Target / Goal Value
How much you want to reach
βΉ
βΉ1LβΉ10Cr
Time Available
Years to achieve the goal
yr
1 yr50 yrs
Investment Amount
Same amount across all assets
βΉ
βΉ10KβΉ1Cr
Investment Duration
Years across all assets
yr
1 yr50 yrs
Asset CAGRs (editable)
π Equity / Index
%
π₯ Gold
%
π’ Fixed Deposit
%
π Real Estate
%
CAGR Result
π
CAGR
β
β
Initial Value
β
β
Final Value
β
β
Wealth Breakdown
β
gain
Invested
βWealth Gained
βGrowth Multiple
ββ‘ Rule of 72 β Doubling Times
Initial Value
β
β
Final Value
β
β
Absolute Gain
β
β
CAGR
β
β
Year-by-Year Growth Trajectory
Invested
Corpus
Wealth Gain
π Year-by-Year Breakdown
What is CAGR (Compound Annual Growth Rate)?
CAGR is the annualised rate at which an investment grows from its initial value to its final value over a given period, assuming all returns are reinvested and growth is compounded annually. It smooths out year-to-year volatility to give you a single, comparable growth rate β the standard benchmark for evaluating investments.
CAGR = (Final Value Γ· Initial Value)^(1 Γ· Years) β 1
Future Value = Initial Value Γ (1 + CAGR)^Years
Required CAGR = (Target Γ· Current)^(1 Γ· Years) β 1
Doubling Time (Rule of 72) = 72 Γ· CAGR %
Future Value = Initial Value Γ (1 + CAGR)^Years
Required CAGR = (Target Γ· Current)^(1 Γ· Years) β 1
Doubling Time (Rule of 72) = 72 Γ· CAGR %
CAGR of Major Indian Asset Classes (Historical)
| Asset Class | 10-Year CAGR | 20-Year CAGR | Risk |
|---|---|---|---|
| Sensex / Nifty 50 | 12β14% | 13β15% | High |
| Nifty Midcap 150 | 14β17% | 15β18% | Very High |
| Gold (INR) | 9β11% | 11β13% | Medium |
| Real Estate (Metro) | 6β10% | 8β11% | Medium |
| Fixed Deposit | 6β7.5% | 6.5β8% | Very Low |
| PPF | 7β8% | 7.5β8.5% | Very Low |
| Inflation (CPI) | 5β6% | 6β7% | β |
Rule of 72 β How Fast Does Money Double?
| CAGR | Years to Double | βΉ1L in 30 years |
|---|---|---|
| 4% (Savings) | 18 years | βΉ3.24L (3.2Γ) |
| 7% (FD) | 10.3 years | βΉ7.61L (7.6Γ) |
| 10% (Balanced) | 7.2 years | βΉ17.45L (17.4Γ) |
| 12% (Large Cap) | 6 years | βΉ29.96L (30Γ) |
| 15% (Mid Cap) | 4.8 years | βΉ66.21L (66Γ) |
| 18% (Small Cap) | 4 years | βΉ1.43Cr (143Γ) |
Frequently Asked Questions
Is a 12% CAGR good for equity mutual funds?βΌ
Yes β 12% CAGR matches the Nifty 50 long-term historical average and is considered a solid benchmark for large-cap equity funds. After adjusting for 6% inflation, the real CAGR is approximately 5.66%, doubling your purchasing power every ~12.7 years. Mid-cap funds historically deliver 15β18% CAGR, while small-cap funds may reach 18β22% with significantly higher volatility.
Why does CAGR of the same fund differ across websites?βΌ
CAGR is highly sensitive to start and end dates. A fund shows 15% CAGR from a market bottom but only 8% from a market peak. Always look at rolling CAGR (calculated across many start dates) rather than a single point-to-point figure. Most platforms display 1/3/5/10-year CAGR using todayβs NAV vs NAV exactly N years ago.
What is the difference between CAGR and XIRR?βΌ
CAGR requires a single lumpsum investment with a known start and end value. XIRR handles multiple cash flows at different dates β such as monthly SIPs, partial redemptions, and dividend reinvestments. For SIP investments, always use XIRR. For a one-time lumpsum, CAGR is sufficient and easier to interpret.
How do I use CAGR to set financial goals?βΌ
Use the Goal CAGR tab above. Enter current savings, target corpus, and years available β the calculator shows the required CAGR. If required CAGR is below 8%, debt funds work. 10β14% requires equity (large-cap/index funds). Above 14% needs mid/small-cap exposure. Above 20% is extremely aggressive and may require reviewing the goal or timeline instead.
Can CAGR be negative?βΌ
Yes β a negative CAGR means your investment lost value over the period. For example, if βΉ1 lakh became βΉ80,000 in 3 years, the CAGR is -7.1%. Negative CAGR happens during prolonged bear markets or sector-specific downturns. This is why diversification and long holding periods (10+ years) are critical for equity β historically, Nifty 50 has never delivered negative 10-year CAGR.