CAGR Calculator
CAGR works the same way whether you're measuring how fast your money grew or how fast your expenses inflated. Enter any two values and the years between them — switch between Investment growth and Expense inflation to see how your number compares to India's benchmarks.
CAGR
12.14%
₹1.0 L grew to ₹2.5 L in 8 years
Wealth multiplier
2.50×
Times your money grew
Real CAGR
+6.14%
After 6% inflation
Holding period
8 yrs
Time in market
How does your return compare?
India benchmarks: historical long-run CAGRs
How this is calculated
CAGR formula
CAGR = (Target / Initial)^(1 / Years) − 1
The same formula applies whether Target is your portfolio's final value or your current monthly expenses — CAGR is just an annualised growth rate.
Real CAGR (investment mode)
Real CAGR = Nominal CAGR − 6% inflation
A nominal return of 9% at 6% inflation gives a real return of roughly 3%. This is the rate at which your purchasing power actually grows.
India investment benchmarks
- Fixed Deposit — ~6.5% (current average)
- Debt Mutual Fund — ~7% (rolling 5-year average)
- Balanced 60:40 portfolio — ~9.5% (historical)
- Nifty 50 — ~12% (20+ year CAGR)
India expense inflation benchmarks
- CPI India (headline) — ~6%
- Blended lifestyle inflation — ~7.1%
- Healthcare — ~10% (hospital costs, specialist fees)
- Education (private) — ~11% (tuition, coaching)
A note worth reading before you act
The FIRE math works — but equity returns are not a guarantee. Every projection on this site uses long-term historical averages as a baseline. Markets can and do deliver a decade of poor returns, and if that decade happens to be the early years of your retirement, it puts real pressure on even a well-sized corpus. This isn't a reason to not pursue FIRE. It is a reason to build in margin.
The single most effective safety net is an active income source — even a small one. Freelance work, consulting, a part-time role, rental income. If your portfolio has a bad year and returns 6% instead of 12%, ₹15,000–₹25,000 a month of outside income means you don't have to redeem units at a loss while the market is down. You simply wait.
Financial independence is worth building towards. But “retired” doesn't have to mean “never earns again.” Keep a skill that someone will pay you for. Treat your corpus target as a floor, not a finish line. The goal is resilience — not just a number.
Not financial advice. planMyFIRE is not a SEBI-registered Investment Adviser. Calculator results are estimates based on historical assumptions and are for educational purposes only. Past market returns do not guarantee future performance. Consult a SEBI-registered adviser before making investment decisions. Terms of use.