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RupeeFrame

Comparing two investments?

It grew 150%. But how fast?

  • One steady yearly rate from start and end
  • A stock, a fund, a house or an FD
  • Compared on equal terms
Your CAGR
13.99%
₹1 L became ₹2.5 L in 7 years · 150% in total
  • You put in₹1 L40%
  • Growth₹1.5 L60%

The same growth, smoothed into years

  • You put in
  • Growth at 13.99% a year
  • At 7% instead

Real investments zig-zag. CAGR is the steady yearly rate that would have taken you from start to end, so each bar is where that steady path stands.

Your inputs

₹
₹1K₹10 Cr
₹
₹1K₹50 Cr
yrs
0.5y40y
%
0%20%

Switch on to see what future amounts will buy at today's prices.

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What this means

  • 150% in total is 13.99% a year, not 21.4%.
    Why?

    Dividing the total return by 7 years ignores compounding: each year's growth builds on the last, so a smaller yearly rate gets you to the same place. CAGR is that smaller, steady rate.

  • Beat 7% a year by 6.99 points, ₹89.4K more than it would have made.
    Why?

    ₹1,00,000 at 7% for 7 years grows to ₹1,60,578. Compare like with like: a fixed deposit's interest is taxed every year, while equity gains are taxed only when you sell.

  • 7.53% a year after inflation.
    Why?

    With prices rising 6% a year, ₹2,50,000 at the end buys what ₹1,66,264 bought at the start.

  • After tax on selling it as an equity fund, 13.99% a year becomes 13.77%: ₹3.3K goes in tax.
    Why?

    Gains on units held a year or more pay 12.5% above ₹1.25 L a year. Both add 4% cess. A fixed deposit's interest is taxed at your slab every year instead, and other assets follow other rules.

  • At 14%, money doubles every 5.3 years.
    Why?

    Quick check with the Rule of 72: 72 ÷ 14.0 ≈ 5.1 years.

More details

Tax if you sell it all

  • Selling at the end ₹2.5 L after 7 years₹3,250 tax · you keep ₹2.47 L

Equity fund, sold in one go. 13.99% a year becomes 13.77% after tax.

How it's calculated

CAGR is the steady yearly rate that turns the starting value into the ending value:

CAGR = (End ÷ Start)1/years − 1

Return after inflation divides out price rises instead of subtracting them: (1 + CAGR) ÷ (1 + inflation) − 1. CAGR fits a single investment. If you added or took out money along the way, use XIRR.

Tax if you sell (equity funds). Units held a year or more pay 12.5% on gains above ₹1.25 L a year; units held under a year pay 20%. Both add 4% cess.

Tax = max(0, gain − ₹1.25 L) × 12.5% × 1.04
You keep = value − tax
After-tax return = (you keep ÷ put in)1/years − 1

Common questions

What is CAGR?
Compound annual growth rate: the yearly return that, compounded, takes an investment from its starting value to its ending value. Real returns go up and down; CAGR is the smooth equivalent.
Why is CAGR lower than total return divided by years?
Because growth compounds. Each year's gain earns returns in the following years, so a smaller steady rate reaches the same end value. 100% over 10 years is about 7.2% a year, not 10%.
CAGR or XIRR?
Use CAGR for one investment with a start and end value. Use XIRR when money went in or came out at different times, like a SIP, top-ups or partial withdrawals.
What is a good CAGR?
It depends on the risk you took. Compare with what a safe option paid over the same years, like an FD, and with inflation. A CAGR below inflation means your money lost buying power.
How is the tax on selling an equity fund worked out?
Gains on units held a year or more (long-term) pay 12.5% on the part above ₹1.25 lakh in a financial year. Gains on units held under a year (short-term) pay 20%. Both add 4% cess. The calculator takes the whole holding as sold in one go and shows what you keep.
Does the same tax apply to debt funds, gold, FDs or property?
No. Debt funds bought after 1 April 2023 and FD interest are taxed at your slab rate, gold and property follow their own holding periods and rates, and this tool applies the equity-fund rule only. Use it as a guide for equity funds, not for every asset.
Can I pay less by selling over several years?
Yes. The ₹1.25 lakh long-term allowance resets every financial year, so selling in parts across years can keep more of the gain tax-free. The figure shown assumes one sale, so it is the higher bill.
Is the after-tax return exact?
It is a close guide. It ignores exit loads, the fund's own expenses beyond the return you enter, and gains you may have booked elsewhere in the same year that use up the allowance. Rates are those of Budget 2024, unchanged for FY 2026-27.

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