Return on Investment
What return did this investment actually deliver?
Total return
0%
on the amount invested
Annualised return (CAGR)
0%
the number worth comparing
Total return vs CAGR
Total return says how much you made; CAGR says how fast. A 150% return is excellent over three years and mediocre over twenty — only the annualised figure is comparable across investments of different lengths.
What to compare against
A large-cap index fund has historically compounded at roughly 11–12% a year over long periods, and a fixed deposit around 7%. If your CAGR is below what an index fund did over the same window, the active choice cost you money.
What this ignores
This is a simple two-point calculation: money in, money out. If you added or withdrew along the way, the honest measure is XIRR, which weights every cashflow by how long it was actually invested.
Illustration only. CAGR assumes a single lump sum held for the whole period with no additions or withdrawals — if you invested in instalments, use the XIRR calculator instead. Returns shown are pre-tax; equity gains above ₹1.25 lakh a year attract 12.5% LTCG, and debt is taxed at slab. Past returns do not predict future ones.
Frequently asked questions
What is CAGR and how is it different from average return?
CAGR (Compound Annual Growth Rate) is the single steady annual rate that would take your starting value to your ending value over the period, accounting for compounding. A simple average of yearly returns can be misleading -- a 50% gain followed by a 50% loss averages to 0%, but you'd actually be down 25%. CAGR reflects what actually happened to your money.Read more: Your Retirement Number Ignores the One Cost Growing Twice as Fast
Is SIP better than a lump sum investment?
Neither is universally better -- a SIP (spreading investment across regular installments) reduces the risk of investing everything right before a downturn and suits regular income, while a lump sum captures more time in the market if invested when prices are relatively low. For most people investing from salary, SIP is the practical default; a lump sum windfall is often still better invested promptly rather than staggered indefinitely.Read more: Your “Financial Advisor” Is Probably Just a Salesperson on Commission
How does compounding actually grow money over time?
Compounding means your returns start earning their own returns, not just your original investment. The effect is small in early years and accelerates sharply later -- which is why starting early matters more than almost any other single investing decision, even more than the exact return rate.Read more: SEBI’s SCORES Portal Promises a 21-Day Fix — Here’s What That Timeline Doesn’t Tell You
What's a realistic long-term return to assume for equity investments?
Long-term equity returns vary a great deal by market and period, and past performance never guarantees future results. Most long-term financial plans use a conservative, inflation-aware assumption rather than recent bull-market numbers -- this calculator lets you test your own assumption and see how sensitive the outcome is to it.Read more: Your Retirement Number Ignores the One Cost Growing Twice as Fast
Estimates only, not financial advice. See our Disclaimer.
