SIP / Lumpsum / CAGR Calculator
Three tabs — SIP returns with a growth chart, lumpsum future value, and reverse CAGR to figure out what rate your investment actually compounded at.
SIP vs Lumpsum — which is better?
Neither is universally better. SIP wins when markets are volatile or falling — you buy more units at lower prices (rupee cost averaging). Lumpsum wins when you invest at market lows and the market goes up from there. In practice most people SIP because they earn monthly, not because they have a lump sum sitting around.
What return rate should I use?
Nifty 50 has returned roughly 12–14% CAGR over the last 20 years. Equity mutual funds in the large-cap category average 10–13%. Debt funds: 6–8%. Fixed deposits: 6–7%. Use 12% as a starting point for equity, then stress-test at 8% and 15% to see the range.
How to use the CAGR tab
Enter what you invested, what it's worth today, and how many years ago you invested. It tells you the annualised return. Useful for evaluating past mutual fund performance, or comparing two different investments that ran for different durations.
Does this account for inflation?
No — these are nominal returns. To get real (inflation-adjusted) returns, subtract ~6% from your expected rate. So if you expect 12% from equity, the real return is roughly 6% in purchasing power terms.
Does this include taxes?
No. Equity mutual fund gains above ₹1L are taxed at 10% LTCG (held >1 year). Short-term gains are taxed at 15%. Debt fund gains are taxed at your income slab rate. Factor this into your expected return if you're planning withdrawals.