CAGR Calculator India 2025
Calculate Compound Annual Growth Rate (CAGR) to analyze investment performance and compare returns over different time periods
CAGR (Annualized Return)
14.47%
Per annum compound growth
Understanding CAGR Calculator
Who Should Use This Calculator
The CAGR calculator is essential for making informed investment decisions across different time periods and asset classes.
- Investors & Portfolio Managers: Compare mutual funds, stocks, and real estate performance
- Financial Planners: Set realistic investment goals and evaluate fund manager performance
- Long-term Investors: Analyze investment performance over multiple years
Why CAGR Analysis Matters
CAGR provides a standardized metric that shows true annualized performance by accounting for compounding effects.
- Eliminates Volatility Noise: Shows consistent annual growth rate needed for final value
- Better Than Simple Average: Accounts for compounding effects over time
- Universal Comparison: Compare investments with different time periods
Key Applications & Benchmarks
CAGR helps in making strategic investment decisions and setting realistic return expectations.
- Equity Investments: 12-15% CAGR is considered good for Indian equity markets
- Debt Instruments: 8-10% CAGR is reasonable for fixed income investments
- SIP Planning: Useful for retirement corpus and goal-based investing
Important Considerations
Understanding CAGR limitations helps you use it more effectively in investment decisions.
- Assumes Constant Growth: Real investments rarely grow at steady rates
- Best for Lump Sum: For SIPs, consider XIRR instead of CAGR
- Tax Impact: Post-tax CAGR may differ significantly from gross returns
Benefits of CAGR Analysis
- Smooths out volatility to show consistent growth rate
- Enables comparison between different investment options
- Provides normalized annual performance metric
- Helps in setting realistic investment expectations
Important Considerations
- CAGR assumes steady growth, actual returns may vary
- Higher CAGR typically involves higher risk
- Consider tax implications on investment gains
- Past performance doesn't guarantee future results
CAGR Calculator FAQs
Get answers to common questions about CAGR calculations, investment analysis, and compound annual growth rates.
Need More Help?
Financial planning requires careful consideration of various factors. Consider consulting with a financial advisor for personalized advice based on your specific situation.