CAGR Calculator India — Compound Annual Growth Rate
Year-wise Growth · Contributions · Inflation Adjusted · Goal Planner
CAGR (Compound Annual Growth Rate) is the single most important metric for evaluating any investment in India. It smooths out volatile year-to-year returns to show the steady annual growth rate that would give the same result. Nifty 50's 5-year CAGR = 14.2%. Sensex 10-year CAGR = 13.8%. A fixed deposit at 7% has CAGR = 7%. Use CAGR to compare mutual funds, stocks, real estate, and business growth on equal footing.
💹 Compound Interest Calculator
📅 Year-wise Breakdown
| Year | Opening Balance | Interest Earned | Closing Balance | Growth |
|---|---|---|---|---|
| 1 | ₹1,00,000 | ₹10,381 | ₹1,10,381 | |
| 2 | ₹1,10,381 | ₹11,459 | ₹1,21,840 | |
| 3 | ₹1,21,840 | ₹12,649 | ₹1,34,489 | |
| 4 | ₹1,34,489 | ₹13,962 | ₹1,48,451 | |
| 5 | ₹1,48,451 | ₹15,411 | ₹1,63,862 |
How to Use This Compound Interest Calculator
Enter your Principal, Annual Interest Rate, Time Period, and select Compounding Frequency. Click Calculate to instantly see maturity value, year-wise growth table, and interactive chart — no login required. Switch tabs for contributions, goal planning, and frequency comparison.
Compound Interest Formula Explained
A = P × (1 + r/n)nt — where P = Principal, r = rate (decimal), n = compounding freq/year, t = years. Example: ₹1,00,000 at 10% quarterly for 5 years: A = 1,00,000 × (1.025)20 = ₹1,63,862. Simple interest gives only ₹1,50,000 — CI gives ₹13,862 more!
Real-Life Compound Interest Examples India 2025
🏦 SBI FD (7.1%): ₹10L for 5 years → ₹14.13L maturity (quarterly compounding). 📮 PPF (7.1%): ₹1.5L/year for 15 years → ₹40.68L (tax-free). 📈 Nifty 50 SIP: ₹5,000/month at 12% for 20 years → ₹49.96L (invested ₹12L). 🎓 Child Education: ₹2L today at 12% for 18 years → ₹19.46L for college.
Compound Interest vs Simple Interest
For ₹5,00,000 at 8% for 10 years — Simple Interest: ₹9,00,000. Compound Interest (Quarterly): ₹11,10,537 — ₹2,10,537 more! The power of compounding grows exponentially. At 20 years, the difference triples. Start investing early — even 5 extra years can add lakhs to your corpus.
Frequently Asked Questions
How is CAGR calculated? What is the formula?
CAGR = (Ending Value ÷ Beginning Value)^(1/n) − 1, where n = years. Example: Mutual fund grew ₹1L to ₹3.5L in 10 years: CAGR = (3.5)^(1/10) − 1 = 3.5^0.1 − 1 = 1.1335 − 1 = 13.35%. Reverse CAGR (find future value): FV = PV × (1 + CAGR)^n. At 13.35% CAGR for 10 more years: ₹3.5L × (1.1335)^10 = ₹12.25L. CAGR eliminates year-to-year volatility — it's the geometric mean of annual returns.
What is a good CAGR for Indian mutual funds?
India benchmark: Nifty 50 long-term CAGR ≈ 12–13% (10+ years). Good fund CAGR targets: Large Cap: 11–13% (matches/slightly beats index). Flexi Cap: 12–15%. Mid Cap: 14–18%. Small Cap: 16–22% (with higher volatility). ELSS: 12–15% (same as flexi cap, plus 80C benefit). Index funds: aim to match benchmark — Nifty 50 index fund CAGR ≈ 12–13% after 0.2% expense ratio. Above 20% CAGR over 10+ years is exceptional.
What is the difference between CAGR and absolute return?
Absolute return = total % gain ignoring time. CAGR = annualized rate accounting for time. Example: ₹1L → ₹2L. Absolute return = 100%. If it took 5 years: CAGR = (2)^(1/5) − 1 = 14.87%. If it took 10 years: CAGR = (2)^(1/10) − 1 = 7.18%. Same absolute return, very different CAGR. CAGR enables comparison: "Fund A 100% in 5 years" vs "Fund B 100% in 7 years" — Fund A CAGR 14.87% vs Fund B 10.41%. Fund A is clearly better.
How to use CAGR to compare mutual funds vs FD vs real estate?
Standard comparison across 10 years: FD CAGR: 7% (pre-tax), ~6.3% post-tax (30% slab). PPF CAGR: 7.1% (tax-free, effectively highest safe-instrument CAGR). Nifty 50 MF CAGR: 12–13% (12.5% LTCG on gains above ₹1.25L/year). Real estate CAGR: 6–9% (varies city/locality, add rental yield for total return). Gold CAGR: 7–9% (10-year average). For wealth creation beyond 10 years, equity MF CAGR consistently dominates despite higher short-term volatility.