Updated Nov 2026 · India

CAGR Calculator India 2026

Calculate the Compound Annual Growth Rate of any investment. Enter beginning value, ending value, and duration to get CAGR, absolute return, and total gain instantly.

Calculate CAGR

Reverse CAGR — Project Future Value

Know your CAGR? Enter it below to project the future value of a lumpsum investment.

What is CAGR?

Compound Annual Growth Rate (CAGR) is the smoothed annual rate of return an investment earns over a given period, assuming profits are reinvested at the end of each year. Unlike simple average return, CAGR accounts for compounding and gives you one clean number to compare different investments.

For example, if you invested ₹1,00,000 and it grew to ₹3,10,585 over 10 years, the CAGR is 12% — meaning the investment grew at an equivalent 12% per year, compounded annually.

How the Calculation Works

The calculator uses the standard CAGR formula:

CAGR = (Final Value / Initial Value)1/n - 1

Example: ₹1,00,000 growing to ₹3,10,585 over 10 years gives CAGR = (3.10585)0.1 - 1 = 12.00% p.a.

CAGR vs Absolute Return vs IRR

MetricWhat It MeasuresBest For
CAGRSmoothed annual growth rateLumpsum investments
Absolute ReturnTotal percentage gain over the periodShort-term trades
XIRR / IRRGrowth rate with irregular cash flowsSIP, multiple investments

Frequently Asked Questions

What is CAGR?
Compound Annual Growth Rate (CAGR) measures the smoothed annual return of an investment over a given time period, assuming profits are reinvested each year. It tells you the equivalent annual rate at which your money grew.
How is CAGR different from average return?
CAGR accounts for compounding and gives the true annualised growth rate. Average return simply adds up yearly returns and divides by years, which can be misleading with volatile returns. For example, +50% then -50% gives 0% average but -25% actual loss (CAGR = -13.4%).
What is a good CAGR for mutual funds in India?
Indian equity mutual funds have historically delivered 12-15% CAGR over 10+ years. Debt funds typically deliver 6-8% CAGR. Index funds tracking Nifty 50 have given roughly 12% CAGR over 15 years.
Can CAGR be negative?
Yes, CAGR is negative when your investment's final value is less than the initial value, indicating a loss over the period. This can happen during prolonged bear markets or poor fund selection.
Does CAGR account for dividends?
Only if you include reinvested dividends in the final value. For an accurate picture, use total return (capital gains + all dividends received) as the final value when calculating CAGR.
CAGR vs XIRR — which should I use?
Use CAGR for a single lumpsum investment with a clear start and end date. Use XIRR for SIP or multiple investments made at different times, as XIRR accounts for irregular cash flows and timing.

Official Sources & References

This CAGR Calculator uses formulas and benchmarks published by authoritative Indian financial regulatory bodies. Always cross-check with the official source before making investment decisions.

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