📈 Investment Tool
Investment Return Calculator
Calculate ROI, CAGR and total returns for lump sum or regular SIP investments. Inflation-adjusted real returns and year-by-year growth included.
₹
12%
%/yr
10 yr
yrs
%/yr
📈 Final Value
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—ROI
—CAGR
—Net gain
—Real return
Investment breakdown
Growth over time
Year-by-year breakdown
YearInvestedReturnsTotal
Wealth insight
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Key return formulas
Different metrics describe different aspects of investment performance. ROI shows the simple percentage gain. CAGR accounts for compounding and time, making it the standard benchmark for comparing investments of different durations.
ROI: (Final − Initial) / Initial × 100%
CAGR: (Final/Initial)^(1/years) − 1
Lump sum FV: FV = PV × (1+r)ⁿ
SIP FV: FV = PMT × ((1+r)ⁿ−1)/r × (1+r)
Real return: (1+nominal)/(1+inflation)−1
CAGR: (Final/Initial)^(1/years) − 1
Lump sum FV: FV = PV × (1+r)ⁿ
SIP FV: FV = PMT × ((1+r)ⁿ−1)/r × (1+r)
Real return: (1+nominal)/(1+inflation)−1
Frequently asked questions
What is the difference between ROI and CAGR?
ROI (Return on Investment) is the simple total percentage gain or loss on an investment, without accounting for time. CAGR (Compound Annual Growth Rate) is the smoothed annualised return that accounts for compounding, making it the better metric for comparing investments held for different periods.
What is real return?
Real return is your investment return adjusted for inflation. If your investment grows at 12% but inflation is 6%, your real return is approximately (1.12/1.06)−1 ≈ 5.7%. Real return represents the actual increase in your purchasing power.
Is SIP better than lump sum investing?
Neither is universally better. SIP (Systematic Investment Plan) reduces timing risk through rupee-cost averaging — you buy more units when prices are low. Lump sum can outperform if markets rise consistently. SIP is generally recommended for most investors as it builds discipline and reduces emotional decision-making.
How is CAGR calculated?
CAGR = (Final Value / Initial Value)^(1/years) − 1. For example, if ₹1 lakh grew to ₹2.5 lakh over 7 years: CAGR = (2.5)^(1/7) − 1 = 14.0%. This is the constant annual rate that would have achieved the same result with compounding.
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