CAGR Calculator
Compound Annual Growth Rate · Find CAGR · Future value · Years to target · Updated 2026
Enter initial value, final value and time period
Value trajectory at 20.11% CAGR
How different CAGR rates grow ₹1.00 L over 5 years
The power of compounding - small rate differences create enormous wealth gaps over time
| CAGR | Future value | Total gain | Multiplier | Doubles in |
|---|---|---|---|---|
| 4% | ₹1.22 L | +₹21,665 | 1.22× | 18.0 yrs |
| 6% | ₹1.34 L | +₹33,823 | 1.34× | 12.0 yrs |
| 8% | ₹1.47 L | +₹46,933 | 1.47× | 9.0 yrs |
| 10% | ₹1.61 L | +₹61,051 | 1.61× | 7.2 yrs |
| 12% | ₹1.76 L | +₹76,234 | 1.76× | 6.0 yrs |
| 14% | ₹1.93 L | +₹92,541 | 1.93× | 5.1 yrs |
| 16% | ₹2.10 L | +₹1.10 L | 2.10× | 4.5 yrs |
| 18% | ₹2.29 L | +₹1.29 L | 2.29× | 4.0 yrs |
| 20% | ₹2.49 L | +₹1.49 L | 2.49× | 3.6 yrs |
Real-world CAGR reference - Indian investments
Historical approximate CAGR (past performance, not guarantee)
| Investment | 10-yr CAGR (approx) | Risk | Liquidity | ₹1L in 5 yrs |
|---|---|---|---|---|
| Nifty 50 (index) | 13.5% | High | High | ₹1.88 L |
| Mid-cap equity funds | 16% | High | High | ₹2.10 L |
| Large-cap equity funds | 12.5% | Moderate | High | ₹1.80 L |
| Gold | 8.5% | Low-Mod | High | ₹1.50 L |
| Real estate (metro India) | 6.5% | Moderate | Low | ₹1.37 L |
| PPF | 7.5% | Zero | Low | ₹1.44 L |
| Fixed deposit (bank) | 7% | Zero | Medium | ₹1.40 L |
| EPF | 8.3% | Zero | Very low | ₹1.49 L |
| Savings account | 3.5% | Zero | High | ₹1.19 L |
What is CAGR? The Most Important Metric for Evaluating Investments
CAGR (Compound Annual Growth Rate) is the smoothed annual growth rate of an investment over a period of time, assuming profits are reinvested at the end of each period. It's the single most useful number for comparing investments that have grown at different rates across different time frames.
If a mutual fund grew from ₹1 lakh to ₹2.5 lakh over 5 years, the CAGR is (2.5/1)^(1/5) − 1 = 20.1%. This means the fund grew at a consistent 20.1% each year, on a compounding basis — even though actual year-by-year growth varied widely. CAGR eliminates the noise of yearly volatility and gives you a clean, comparable rate.
CAGR vs absolute return - why CAGR matters more
| Investment | Initial | Final | Absolute return | Years | CAGR | Better investment? |
|---|---|---|---|---|---|---|
| Fund A | ₹1,00,000 | ₹2,00,000 | 100.00% | 5 yrs | 14.87% | Compare CAGR |
| Fund B | ₹1,00,000 | ₹3,00,000 | 200.00% | 10 yrs | 11.61% | Compare CAGR |
| Fund C | ₹1,00,000 | ₹1,50,000 | 50.00% | 3 yrs | 14.47% | Compare CAGR |
Fund B looks best by absolute return (200%), but Fund C actually has the highest CAGR (14.47%) — meaning it grew fastest per year. Fund A is second at 14.87% CAGR. Without CAGR, you can't compare investments that ran for different durations. CAGR normalizes time and makes apples-to-apples comparison possible.
The Rule of 72 - mental shortcut for CAGR
Divide 72 by the CAGR to get the approximate number of years for your investment to double. At 12% CAGR, money doubles in 72÷12 = 6 years. At 6%, it doubles in 12 years. This is why CAGR matters so much: a 6% difference in CAGR over 30 years is the difference between 6× growth and 30× growth.