CAGR Calculator
Calculate Compound Annual Growth Rate or future value of investments
CAGR Details
Benchmark CAGR Reference
Nifty 50~12–14%
Fixed Deposit~6–7%
Gold~10%
Real Estate~8–10%
Enter details and click Calculate
CAGR
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Total Return
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Absolute Gain
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| Year | Value | Gain |
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How to Use
- Choose Mode: "Calculate CAGR" (from initial and final values) or "Find Future Value" (from CAGR and initial value).
- Calculate CAGR: Enter Initial Value, Final Value, and Number of Years.
- Find Future Value: Enter Initial Investment, CAGR (%), and Number of Years.
- Click Calculate to see the result with total return % and year-wise growth table.
- Use the context benchmarks shown to compare your investment's CAGR against Nifty 50, gold, and FD.
What is CAGR?
Compound Annual Growth Rate (CAGR) is the rate at which an investment would have grown if it grew at a steady rate annually. It smooths out volatility to show a single representative growth rate — making it the standard metric for comparing investments over time.
CAGR = (Final Value / Initial Value)^(1/Years) − 1
CAGR Benchmarks (India, ~10-year average)
| Asset Class | Approx. CAGR |
|---|---|
| Nifty 50 (large-cap equities) | 12–14% |
| Nifty Midcap 150 | 15–18% |
| Gold | 9–11% |
| Real Estate (metro cities) | 7–10% |
| Fixed Deposit (SBI) | 6–7% |
| PPF | 7.1% |
| Inflation (CPI) | 5–6% |
CAGR vs Absolute Return vs XIRR
- Absolute Return: (Final − Initial) / Initial × 100. Does not account for time — a 50% return over 1 year vs 10 years is very different.
- CAGR: Annualised return. Best for lump sum, fixed-period investments. Assumes reinvestment.
- XIRR: Best for SIPs and irregular cash flows (like mutual fund SIPs with variable amounts). More accurate than CAGR for ongoing investments.
Frequently Asked Questions
As a benchmark: Inflation (CPI) ≈ 5–6%, so any investment must beat 6% just to maintain real value. Fixed income (FD, PPF): 6–8% CAGR. Gold: ~10% (long-term). Real estate: 7–10%. Nifty 50 equity: ~12–14% CAGR over 10+ years. A portfolio CAGR of 10–12% is considered good for a balanced investor. Above 15% consistently over long periods is exceptional.
CAGR is a mathematical smoothing of returns — it shows what constant annual return would produce the same final result. It does NOT mean returns were smooth. Nifty 50 might show 12% CAGR over 10 years while having years of +40% and years of -30%. CAGR is useful for comparing investments over the same period; it doesn't predict future consistency.
CAGR works for a single initial investment with a single final value (no intermediate cash flows). IRR (Internal Rate of Return) handles irregular cash flows — multiple investments and withdrawals at different times. For SIPs and real estate (with rental income and multiple costs), XIRR/IRR gives a more accurate picture than CAGR. Use CAGR for simple lump-sum comparisons.