CAGR Calculator India 2025-26 Compound Annual Growth Rate for Mutual Funds, Stocks, Real Estate & SIP Returns

Updated: 17 Jun 2026  |  Nifty 50, MF & benchmark presets  |  CAGR · Future Value · Years to Goal

₹1,00,000
₹1K₹1 Cr
₹2,50,000
₹1K₹2 Cr
10 years
1 yr40 yrs

Indian market CAGR benchmarks:

CAGR

9.60%

₹1L grew to ₹2.5L in 10 years

Absolute Return

150.0%

Wealth Gain

₹1,50,000

Rule of 72 — Money doubles in

7.5 years (at 9.60% CAGR)

Year-by-year value growth

What ₹1,00,000 becomes at different CAGR rates

CAGR 5 yrs 10 yrs 15 yrs 20 yrs 25 yrs

How CAGR is Calculated in India — Formula, Meaning & Step-by-Step Method

CAGR (Compound Annual Growth Rate) is the most widely used metric to compare investment returns in India — used by Groww, Zerodha, Moneycontrol, and SEBI-registered investment advisers to benchmark mutual fund performance, Nifty returns, and real estate appreciation over time. Unlike absolute return (which ignores time), CAGR normalises growth to a per-year rate, making it possible to compare a 3-year equity fund against a 10-year PPF investment on equal footing.

CAGR Formula — Three Variants

1. Calculate CAGR (most common)

CAGR = (Final Value ÷ Initial Value)^(1÷Years) − 1

2. Calculate Future Value

Future Value = Initial Value × (1 + CAGR)^Years

3. Calculate Years to reach goal

Years = log(Final ÷ Initial) ÷ log(1 + CAGR)

Step-by-Step CAGR Calculation with Indian Example

  1. 1Identify initial value: Nifty 50 on 1 Jun 2015 = 8,183
  2. 2Identify final value: Nifty 50 on 1 Jun 2025 = 24,200 (approx)
  3. 3Period = 10 years
  4. 4CAGR = (24,200 ÷ 8,183)^(1÷10) − 1 = (2.956)^0.1 − 1 = 1.1143 − 1 = 11.43% CAGR
  5. 5Absolute return = (24,200 − 8,183) ÷ 8,183 × 100 = 195.7% — but CAGR gives you the annualised rate for proper comparison

CAGR vs Absolute Return

Absolute return = 150% over 10 years sounds impressive. But CAGR reveals it’s only 9.6%/year — less than a well-chosen large-cap mutual fund. Always compare using CAGR when periods differ.

CAGR vs XIRR for SIPs

CAGR works for lumpsum investments. For SIP (monthly investments), use XIRR — it accounts for different cash inflow dates. A fund showing 15% CAGR may give you 13% XIRR on your SIP.

3 Real Indian Investment CAGR Examples — Nifty, Mutual Fund & Real Estate

Real return data from Indian markets. All figures in Indian Rupees (₹). Past performance does not guarantee future returns.

1

Amit Verma — Nifty 50 Index Fund Lumpsum Investment, Delhi 📈

IT professional invested ₹5 lakh in a Nifty 50 index fund (via Groww) in June 2015. Evaluated in June 2025.

Initial Investment
₹5,00,000
June 2015
Current Value
₹14,77,000
June 2025
CAGR
11.43% p.a.
10 years
Absolute Return
195.4%
Gain: ₹9.77L
Key insight: While the absolute return of 195% sounds extraordinary, the 11.43% annual CAGR is a better comparison metric. Over the same period, Nifty Next 50 delivered ~14% CAGR and active large-cap funds averaged ~12.5% CAGR. Index investing beat ~60% of active large-cap funds on a post-expense CAGR basis. LTCG tax of 12.5% applies on gains above ₹1.25L in FY 2025-26 (Budget 2024 revision).
2

Sunita Rao — Small Cap Mutual Fund Growth, Bengaluru 📊

Software architect invested ₹2 lakh lumpsum in a top small-cap fund in April 2019, tracking performance to April 2025.

Initial Investment
₹2,00,000
April 2019
Current Value
₹5,44,000
April 2025
CAGR
18.1% p.a.
6 years
Absolute Return
172%
Gain: ₹3.44L
Volatility caveat: During COVID crash (March 2020), this fund fell 45% — Sunita’s ₹2L became ₹1.1L briefly. Her 18.1% CAGR includes the recovery, which is why holding through volatility matters. Small cap funds in India have delivered 16–22% CAGR over 10+ year periods historically, but with 2–3× the volatility of large cap funds. SEBI mandates small cap funds hold ≥65% in companies ranked 251+ by market cap.
3

Ravi & Meena Sharma — Residential Apartment CAGR, Pune 🏘️

Couple bought 2BHK in Hinjewadi, Pune for ₹45L in 2015. Property valued at ₹87L in 2025 (independent valuation).

Purchase Price
₹45,00,000
2015
Current Value
₹87,00,000
2025
CAGR
6.8% p.a.
10 years
Rental Yield
+2.5% p.a.
Total: ~9.3%
Real estate CAGR reality: Raw price CAGR of 6.8% looks modest vs equity, but add rental yield (~2.5%/yr) for total return of ~9.3%. Subtract inflation (~5%) for real CAGR of ~4.3%. Mumbai premium areas (Bandra, Lower Parel) showed 9–11% CAGR; Tier-2 cities (Indore, Coimbatore) averaged 10–14% CAGR during this period driven by IT corridor growth. Key: real estate CAGR is illiquid and transaction costs (stamp duty ~5–6%, brokerage 2%) significantly reduce effective CAGR.

5 Expert Tips for Using CAGR to Evaluate Indian Mutual Fund & Stock Market Returns

Used by SEBI-registered investment advisers and seasoned Indian investors to avoid common CAGR traps.

01

Never Compare CAGR Across Different Time Periods — Use Rolling Returns Instead

A mutual fund showing 22% CAGR over 3 years might have started right after a market crash (low base). Compare the same fund’s 5-year, 7-year, and 10-year CAGR. SEBI mandates that AMCs display rolling returns on their websites. A fund with consistent 13–15% CAGR across multiple rolling periods is far superior to one showing 22% in 3 years but only 8% over 10 years. AMFI India publishes NAV history for all mutual funds free at amfiindia.com — use it to calculate your own CAGR.

02

Adjust CAGR for Inflation to Find Your Real Returns — The Number That Actually Matters

India’s average CPI inflation has been 5–6% over the past decade. A 12% CAGR from a Nifty 50 index fund sounds good, but your real (inflation-adjusted) CAGR is only 12% − 5.5% = 6.5%. Compare this to: PPF at 7.1% nominal → ~1.6% real; FD at 7% nominal → ~1.5% real. Equity’s real CAGR of 6–7% is 4× better than FD on a real returns basis. Always ask: “What is my real purchasing power gain?” Use our Inflation Calculator to find exactly how much your future corpus will buy.

03

Use the Rule of 72 to Quickly Estimate Doubling Time for Any Indian Investment

Rule of 72: Years to double money = 72 ÷ CAGR. Quick Indian comparisons: PPF at 7.1% → doubles in 10.1 years; FD at 7% → 10.3 years; Nifty 50 at 12% → 6 years; good midcap fund at 15% → 4.8 years; small cap at 18% → 4 years. This rule also works backwards — if your money doubled in 8 years, your CAGR was approximately 72 ÷ 8 = 9%. The Rule of 72 helps you quickly spot if an investment’s claimed CAGR is realistic for your financial goal timeline.

04

For SIPs, Always Use XIRR — Not CAGR — to Measure Your Actual Returns

CAGR is accurate only for lumpsum investments. For SIP (Systematic Investment Plan), each monthly instalment is invested at a different NAV and at different times, making simple CAGR misleading. XIRR (Extended Internal Rate of Return) accounts for the timing of each cashflow. Example: A fund may show 15% CAGR (point-to-point NAV growth), but if you invested via SIP during a high-market period and the market corrected, your personal XIRR may be only 10–11%. Use our SIP Calculator which uses XIRR methodology for accurate SIP return projection.

05

Set Realistic CAGR Expectations for Indian Assets — Beware of Recency Bias

After Nifty 50 delivering 20%+ in FY24 and FY25, many investors now expect 20% CAGR as “normal.” Historical perspective: Sensex 30-year CAGR (1994–2024) ≈ 13.5%; Nifty 50 20-year CAGR ≈ 13%; Best performing large-cap fund (20 years) ≈ 18.5%. For financial planning, SEBI-registered advisers typically use 10–12% CAGR for equity, 7–8% for debt, and 6% for gold in long-term projections. Assuming 18–20% CAGR may significantly undersave for retirement or children’s education goals. Plan conservatively; be pleasantly surprised.

Frequently Asked Questions — CAGR Calculator, Mutual Fund Returns & Investment Benchmarks India

What is CAGR meaning in India and why is it important?+
CAGR (Compound Annual Growth Rate) is the annualised rate at which an investment grows from its initial value to its final value, assuming profits are reinvested each year. SEBI mandates all mutual funds in India to display CAGR (not absolute return) for funds with track records over 1 year. It’s the standard metric used by AMFI, Value Research, Groww, Zerodha, and every regulated investment adviser — because it allows fair comparison between investments of different durations.
What is a good CAGR for mutual funds in India?+
Good 10-year CAGR benchmarks: Large cap funds 12–15%; Mid cap funds 15–18%; Small cap funds 16–22%; Debt/liquid funds 6–8%; Hybrid balanced funds 10–13%. Any fund consistently beating its benchmark index CAGR by 2–3% over 5+ years is considered excellent. Nifty 50 ~13.5% over 10 years is the large-cap benchmark.
What is the Nifty 50 CAGR over 10, 15, and 20 years?+
Nifty 50 approximate CAGR: 5-year (FY20–25) ~17%; 10-year (FY15–25) ~12–13%; 15-year ~13.5%; 20-year ~14.5%. These are price returns; add ~1–1.5% for total return (dividends reinvested). In real terms (after ~5% inflation), Nifty 50’s 10-year real CAGR is approximately 7–8%.
How is CAGR different from absolute return?+
Absolute return ignores time; CAGR normalises to per-year rate. 100% return in 2 years = 41.4% CAGR; 100% in 10 years = 7.2% CAGR. The same absolute return on different timeframes reveals dramatically different annualised performance. Always use CAGR when comparing investments of different durations.
Can CAGR be negative?+
Yes. Negative CAGR means value declined. If ₹1 lakh became ₹70,000 over 3 years: CAGR = (0.7)^(1/3) − 1 = −11.3%. Indian sectoral funds (infra 2008–2018) and individual stocks have shown negative CAGR over long periods. This reinforces why diversification across sectors and asset classes is critical.
What is the difference between CAGR and XIRR in mutual funds?+
CAGR is for lumpsum (one-time) investments. XIRR is for SIPs (multiple investments at different dates). A fund’s 5-year CAGR might be 14%, but your personal SIP XIRR could be 11–16% depending on when you invested each instalment and market levels at those times. XIRR is your true personal return — calculate it in Excel using =XIRR(cashflows, dates).
What CAGR should I use for retirement planning in India?+
Conservative but realistic assumptions used by SEBI-registered advisers: Equity (diversified MF) 10–12% nominal, 5–7% real; Debt/FD/PPF 6–7% nominal; Gold 7–8% nominal; Blended 60:40 portfolio ~9%. Plan at 10%, hope for 12%. Even 2% CAGR difference over 30 years produces 66% more corpus — so assumptions matter enormously.
How to calculate CAGR in Excel for mutual funds?+
Excel formulas: CAGR = =(FinalValue/InitialValue)^(1/Years)-1. Future Value = =InitialValue*(1+CAGR)^Years. Years needed = =LOG(Final/Initial)/LOG(1+CAGR). For SIP: =XIRR(cashflows_range, dates_range) — enter SIP amounts as negative (outflows) and current value as positive (inflow).
What is the CAGR of gold in India over 10 years?+
Gold CAGR in INR: 5-year ~15% CAGR (COVID/inflation-driven); 10-year ~10.5% CAGR; 20-year ~12% CAGR. SGBs (Sovereign Gold Bonds) add 2.5% p.a. interest + zero LTCG on maturity = effective CAGR 13–14.5%, making SGBs superior to physical gold or gold ETFs for Indian investors.
What CAGR is needed to reach ₹1 crore in 10 years?+
Starting from ₹25L: need 14.9% CAGR; from ₹50L: 7.2% CAGR; from ₹10L: 25.9% CAGR (requires exceptional performance). Via SIP of ₹50K/month for 10 years: needs ~8.5% CAGR — achievable with balanced hybrid funds.
What is the Rule of 72 and how to use it for Indian investments?+
Rule of 72: years to double = 72 ÷ CAGR. PPF at 7.1% → 10.1 years to double; Nifty 50 at 12% → 6 years; small cap at 18% → 4 years. Backwards: if money doubled in 8 years, CAGR ≈ 9%. Quick mental math for any Indian investment comparison without a calculator.
PPF vs ELSS — which has better CAGR in India?+
PPF 10-year CAGR: ~7.6% (fixed, guaranteed, fully tax-free); ELSS average 10-year CAGR: ~13–15% (market-linked, volatile). Both offer 80C deduction. ELSS historically outperforms PPF significantly over 15+ years despite short-term volatility. LTCG on ELSS >₹1.25L taxable at 12.5% (Budget 2024). For 30-year horizon, ELSS CAGR typically produces 3–5× more wealth than PPF.
What is real estate CAGR in Mumbai, Bengaluru, and Hyderabad?+
2015–2025 price CAGR: Mumbai (suburbs) 9–12%; Delhi NCR 6–10%; Bengaluru (Whitefield) 10–13%; Hyderabad (HITECH City) 11–15% (fastest appreciating); Pune (Hinjewadi) 9–12%. Add rental yield 2–3% for total return. Subtract stamp duty ~6%, maintenance, and property tax for net effective CAGR. Source: NHB Residex, Knight Frank India.
How does CAGR relate to compounding and wealth creation?+
CAGR is compounding quantified. ₹1L at 7% for 30 years = ₹7.6L; at 12% = ₹29.9L; at 15% = ₹66.2L. The 3% CAGR difference (12% vs 15%) produces 2.2× more wealth over 30 years. Time amplifies CAGR differences exponentially — start early, maintain consistent allocation, never interrupt compounding.
Does CAGR include dividends from Indian stocks and mutual funds?+
Price CAGR does NOT include dividends. Total Return CAGR (TRI) does. Indian mutual funds (growth option) automatically reinvest dividends into NAV — so mutual fund CAGR is already a total return figure. For direct stocks, add dividend yield (~1–2% for Nifty 50 companies) to price CAGR to get total return CAGR. SGBs give 2.5% guaranteed annual interest on top of price CAGR.
What CAGR to target for children’s education corpus in India?+
Indian education inflation: 10–12% p.a. (IIT/IIM fees have grown at ~10% CAGR historically). Target investment CAGR: minimum 12–14% to beat education inflation. Strategy: 70% equity (ELSS/midcap) + 30% debt for a 10–15 year horizon. SIP of ₹11,180/month for 15 years at 12% CAGR = ₹50L corpus. Use our Goal-Based SIP Calculator for exact figures.
How to find my mutual fund portfolio CAGR in India?+
Methods: (1) Check Groww/Zerodha Coin/Kuvera dashboard — shows XIRR automatically; (2) Download CAS (Consolidated Account Statement) from CAMS or KFintech — includes portfolio XIRR; (3) MFCentral (AMFI platform) — log in with PAN for full portfolio XIRR; (4) Excel XIRR formula with your SIP dates and current value. Always compare your personal XIRR to the fund’s benchmark CAGR over the same period.
What CAGR should I expect from NPS, EPF, and PPF for retirement?+
EPF: 8.25% CAGR (FY2024 rate, EEE tax status — fully tax-free); PPF: 7.1% CAGR (current rate, also EEE); NPS equity tier: ~13–14% CAGR since inception (2009), but 40% must be annuitised and taxed as income. On post-tax basis for 30% bracket: EPF ≈ 8.25%; PPF ≈ 7.1%; NPS net ≈ 10–11%. Optimal combination: max EPF + NPS 80CCD(1B) ₹50K + PPF for guaranteed allocation.
Is CAGR the same as FD interest rate?+
For FDs with quarterly compounding: CAGR ≠ stated rate. FD at 7% with quarterly compounding: effective CAGR = (1+7%/4)^4 − 1 = 7.186%. Always check Effective Annual Yield (EAY) for the true CAGR. For simple interest savings accounts, stated rate ≈ CAGR since interest isn’t compounded within the year.
What CAGR is required to beat Indian inflation and create real wealth?+
India CPI inflation averages 5–6%. Minimum CAGR to preserve purchasing power: 5–6% (PPF barely achieves this). To create real wealth: 12–15% CAGR (diversified equity funds). Only equity and real estate have historically beaten Indian inflation over 15+ year periods. Fixed income (FD, bonds, post-office schemes) barely preserves purchasing power on a post-tax, post-inflation basis — reinforcing the need for equity allocation in every long-term Indian portfolio.
How does CAGR calculator help in SIP planning for Nifty, Midcap & Small Cap?+
Use CAGR mode to find what rate your past SIP achieved; use Future Value mode to project corpus with a target CAGR assumption; use Years to Goal to see how long to reach ₹1 crore. Benchmark: Use Nifty 50 preset (13.5%) for large-cap/index fund planning, small cap preset (18%) for aggressive growth scenarios, and PPF preset (7.1%) for conservative baseline. Always plan with a 10–12% CAGR — treat any outperformance as a bonus.

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Disclaimer — CAGR Calculator (CalcWise Finance)

The CAGR figures, future value projections, and investment return estimates generated by this tool are indicative and for educational purposes only. CalcWise Finance is not a SEBI-registered investment adviser, portfolio manager, or research analyst. Nothing on this page constitutes investment advice, a buy/sell recommendation, or a promise of returns.

Historical CAGR data (Nifty 50, mutual funds, real estate, gold) referenced herein is sourced from publicly available information and is subject to change. Past performance is not indicative of future results — a core principle of SEBI (Investment Advisers) Regulations, 2013. Actual investment returns will vary based on market conditions, fund management decisions, expense ratios, tax incidence, and individual circumstances.

All investments are subject to market risks. Mutual fund investments are subject to market risks — read all scheme-related documents carefully before investing. For personalised investment advice, consult a SEBI-registered investment adviser. CalcWise Finance assumes no liability for investment decisions based on this calculator’s output. Regulatory authorities: Investment advisers are regulated by SEBI — sebi.gov.in. For mutual fund information: AMFI India — amfiindia.com. Investor grievance: SEBI SCORES — scores.sebi.gov.in. Last Updated: 17 Jun 2026.