Investment Return Calculator — CAGR & SIP Growth | Techovra
Investment Return Calculator
Convert any lump sum or SIP into one annualised return you can compare.
Calculate Your Annualised Return
Choose lump sum or SIP, then enter your numbers. Results update as you type.
A ₹1,00,000 investment that grows to ₹1,80,000 sounds like "80% return", but that number means almost nothing without knowing how long it took. This investment return calculator converts any lump sum or SIP investment into CAGR, the single number that actually lets you compare returns across different time periods and investment types.
The CAGR formula
CAGR, Compound Annual Growth Rate, smooths an investment's growth into a single annualised percentage, as if it had grown by that exact same rate every single year. It's the only fair way to compare a 3-year investment against a 15-year one. If you only need that one figure from a lump sum, the standalone CAGR calculator gives it to you directly.
A worked example: lump sum CAGR
Say you invested ₹1,00,000 five years ago, and it's worth ₹1,80,000 today.
- Ratio: 1,80,000 ÷ 1,00,000 = 1.8.
- Run the formula: CAGR = (1.8)^(1/5) − 1 ≈ 12.47%.
That 80% total gain works out to roughly 12.47% p.a. compounded, a healthy, realistic return in line with what Nifty 50 has delivered over longer stretches historically (roughly 12%-14% CAGR over the past 20 years). This investment return calculator turns any two numbers and a time period into that same comparable annualised figure.
A worked example: SIP return calculator
Lump sum CAGR is straightforward. A SIP, where you invest a fixed amount every month rather than all at once, needs a slightly different calculation, since each instalment has compounded for a different length of time. Switch the calculator above to SIP mode to work backward from a final value.
Say you invest ₹10,000/month for 20 years, assuming a 12% p.a. CAGR, the same long-term Nifty 50 assumption used above.
- Monthly rate: 12% ÷ 12 = 1%.
- Number of instalments: 20 years × 12 = 240.
- Run the formula: Future value = P × [((1+r)^n − 1) ÷ r] = 10,000 × 989.26 ≈ ₹98.93 lakh.
You'd have put in ₹24,00,000 of your own money across those 20 years. The remaining ₹74.93 lakh is growth, the clearest illustration on this site of what sustained equity-level compounding can do over two decades, assuming the 12% CAGR holds. If you'd rather project a one-time amount on the same assumptions, the lump-sum investment calculator runs that scenario.
Why the assumed rate matters more than almost anything else in this calculation
Small differences in assumed CAGR compound into enormous differences over 20 years. The same ₹10,000/month SIP at 8% instead of 12% p.a. lands closer to ₹59 lakh, a gap of roughly ₹40 lakh from a 4-percentage-point difference in the assumed rate. Always run this annualised return calculator with a conservative rate rather than the best year you've ever seen, since equity returns are never a straight line year to year even when the long-term average holds. Underneath it all, the growth is just compound interest doing its work across every instalment.
Frequently Asked Questions
Is CAGR the same as the return my mutual fund shows me?
Usually, yes. Most fund fact sheets quote CAGR (sometimes labelled "annualised return") for periods over a year. For SIP investments specifically, funds often show XIRR instead, which accounts for the timing of each instalment more precisely than a simple CAGR does, though the two are usually close for regular monthly SIPs.
Is 12% a safe assumption to use for my own planning?
It's a reasonable long-term historical reference for Nifty 50 equity, not a guarantee. Markets don't return the average every year. Some years deliver 25%+, others are negative, and past performance never assures future results. For conservative planning, many advisors suggest using a slightly lower assumption, closer to 10%-11%, to build in a margin of safety.
This shows you the return math using standard formulas. It is not investment advice. Equity returns are not guaranteed and past performance does not predict future results.