Calculate Your Investment's CAGR

An investment that grew from 5 lakh to 12 lakh in 6 years and one that grew from 10 lakh to 24 lakh in 8 years both sound impressive, but which actually performed better? CAGR answers that by converting any growth story into one comparable annualised number, so you can measure mutual funds, stocks, and even real estate on the same scale.

What is a CAGR Calculator?

CAGR (Compound Annual Growth Rate) is the constant annual rate that would take an investment from its starting value to its ending value over a given period. It smooths out year-to-year ups and downs into a single comparable figure, which is why it’s the standard benchmark used to compare returns across different funds, stocks, and asset classes.

Your Investment

Initial Value / PV (₹)

The amount you started with (Present Value).

Final Value / FV (₹)

What it grew to (Future Value).

Duration (Years)

How many years it took to grow from PV to FV (1–50).

Inflation Rate (%)

India's long-term CPI is around 5–7%. Used for Real CAGR.

Your CAGR

— grew to — in — years

Results Summary

CAGR

Annualized growth rate

Total Gain

₹0

FV − PV (absolute rupees)

Absolute Return

Total % over the whole period

Tax on Gains

₹0

At 12.5% LTCG rate

Post-Tax Final Value

₹0

After tax on gains

Wealth Multiplier

0×

How many times your PV grew

Growth Trajectory

Smooth exponential curve from PV to FV — assumes constant annual growth at your CAGR.

Key Insights

Year-by-Year Growth

Year	Value	Annual Gain	Cuml. Gain	Cuml. %	Multiple	Real Value

Reverse Math Reference

If you flip the equation around, here's what your CAGR implies for other scenarios.

If duration were doubled

FV_2n = PV × (1 + CAGR)²ⁿ

₹0

At same CAGR over — years

PV needed to reach FV in half the time

PV_n/2 = FV / (1 + CAGR)^n/2

₹0

Required PV for — years

Time to double (at this CAGR)

n_2× = ln(2) / ln(1 + CAGR)

0 yrs

Years for PV to become 2×PV

Advanced Metrics

For the financially curious — these reveal what's really happening under the hood.

Real CAGR

After inflation, before tax

Post-Tax Real CAGR

After tax + inflation (bottom-line)

Doubling Time (Exact)

— yrs

When your money doubles at this CAGR

A breakdown of CAGR (Compound Annual Growth Rate) and what each result means.

1. What is CAGR?

CAGR (Compound Annual Growth Rate) is the constant annual growth rate that takes an investment from its starting value (PV) to its ending value (FV) over a given duration. It smooths out year-to-year variation — actual returns in any single year may be higher or lower — and gives you one comparable number across investments. It's the standard benchmark for comparing mutual funds, stocks, real estate, and other long-term assets.

2. The Core Formula

The CAGR equation is:

CAGR = (FV / PV)^1/n − 1

The growth ratio FV/PV tells you how many times the investment grew (e.g. 2× if it doubled). Raising it to the power 1/n annualizes that growth — it answers "what constant annual rate, compounded n times, produces this multiple?". Subtracting 1 converts the growth factor into a rate.

3. Real CAGR (Inflation-Adjusted)

Nominal CAGR doesn't account for inflation. To see what your money actually earned in purchasing power, use the Fisher equation:

Real CAGR = (1 + nominal CAGR) ÷ (1 + inflation) − 1

If your CAGR is 12% and inflation is 6%, your real CAGR is about 5.66%. This is the rate at which your purchasing power actually grew.

4. Tax on Gains

This calculator applies a flat 12.5% LTCG rate to the total gain (FV − PV). This aligns with India's long-term capital gains tax on equity and equity-oriented mutual funds:

Tax = (FV − PV) × 12.5%

For debt funds (post-April 2023) and FDs, gains are taxed at your slab rate, typically higher.

5. Doubling Time

How long it takes to double your money at a constant CAGR:

Doubling Time = ln(2) / ln(1 + CAGR)

At 12% CAGR, money doubles in about 6.12 years; at 15%, about 4.96 years.

Caveats & Disclaimer

Returns are illustrative. CAGR assumes a constant annual growth rate — actual year-by-year returns vary, sometimes significantly. CAGR is best used for comparison and planning, not as a predictor of future single-year returns. Mutual fund investments are subject to market risk; past performance does not guarantee future results. The 12.5% LTCG assumption applies to equity/equity-oriented holdings held longer than 1 year. Consult a tax advisor for personalised guidance.

One CAGR Number Doesn't Rank Your Whole Portfolio

This calculator computes CAGR for one investment at a time. Families holding investments across multiple funds, stocks, and platforms usually want to know which of their holdings is actually performing best, which means running this same calculation repeatedly and keeping track of the results manually.

How WealthNest.AI Helps Beyond This Calculator

WealthNest.AI computes CAGR automatically for every investment across your family’s accounts and ranks them side by side, so you always know which holdings are pulling their weight without running the numbers yourself each time.

See this alongside every other account your family holds, all in one place. Download the WealthNest.AI app to get started.

Frequently Asked Questions

What's the difference between CAGR and XIRR?

CAGR assumes a single lumpsum invested once and works out its annualised growth. XIRR is used when there are multiple cash flows on different dates, like a SIP, so CAGR would give a misleading answer for those.

What is Real CAGR?

It's your CAGR adjusted for inflation using the Fisher equation, showing what your investment actually grew at in terms of purchasing power, not just nominal rupees.

How is tax applied to the CAGR calculation?

This calculator applies a flat 12.5% LTCG rate to the total gain, matching India's long-term capital gains tax on equity and equity-oriented mutual funds.

Can CAGR predict future returns?

No. It's a backward-looking measure of what already happened between two points in time. It's useful for comparison and planning assumptions, not as a guarantee of future performance.

Can WealthNest.AI calculate CAGR for all my investments automatically?

Yes. Once your accounts are aggregated, CAGR is computed automatically for each holding without manual data entry.