Three calculations in one
This tool handles the three questions investors ask about a one-time investment: what will it grow to (future value), what return did it actually earn (CAGR), and how much must be invested today to reach a target (present value). Switch modes with the radio buttons.
Future value
FV = P × (1 + r)n. ₹5,00,000 invested at 12% for 10 years becomes ₹15,52,924 — a 3.1× multiple. The year-wise table shows the value at the end of every year along with its inflation-adjusted equivalent, and the bar chart makes the acceleration of compounding visible.
CAGR — compound annual growth rate
CAGR = (Final ÷ Initial)1 ÷ years − 1. If ₹5 lakh grew to ₹20 lakh in 10 years, the absolute return is 300% but the CAGR is 14.87%. CAGR is the only fair way to compare investments held for different periods — a 50% gain over 2 years (22.5% CAGR) beats an 80% gain over 5 years (12.5% CAGR). It is also how mutual funds and stocks report multi-year performance.
Amount needed today
PV = FV ÷ (1 + r)n. To have ₹20 lakh for a child's education in 10 years at 12%, you need to invest ₹6,44,000 today — or, as the tool also shows, a monthly SIP of about ₹8,700 instead.
Rule of 72 and doubling time
Money doubles in approximately 72 ÷ rate years: 6 years at 12%, 9 years at 8%. The exact figure is ln 2 ÷ ln(1 + r), which the calculator displays.
Lumpsum vs SIP
- A lumpsum gets the full amount compounding from day one, so it wins when markets rise steadily.
- A SIP spreads the entry price and suits regular income earners; it also reduces regret if markets fall soon after investing.
- Many investors park a lumpsum in a liquid fund and move it to equity through an STP over 6–12 months.
Gains on equity funds held over 12 months are taxed at 12.5% above ₹1.25 lakh per year; returns shown are pre-tax.
Frequently Asked Questions
What is the difference between absolute return and CAGR?
Absolute return is total growth regardless of time; CAGR converts it into a yearly compounding rate so periods of different length can be compared.
How do I calculate CAGR for an investment?
Choose CAGR mode, enter the initial amount, final value and number of years. CAGR = (Final/Initial)^(1/years) − 1.
Is lumpsum better than SIP?
Mathematically a lumpsum invested earlier earns more if returns are steady, but SIPs reduce timing risk. Use whichever matches your cash flow.
Does the calculator account for taxes?
No. Results are pre-tax. Apply the relevant capital gains rate to the gains for a post-tax figure.
Disclaimer: This tool is for general information and estimation only. Tax rates and rules change — verify with official sources or a professional before acting. Read full disclaimer.