Investment Returns Calculator

Calculate investment returns and CAGR

Frequently Asked Questions

What is CAGR and why is it important?

CAGR (Compound Annual Growth Rate) shows the smoothed annual return assuming reinvestment. It enables fair comparison between investments of different durations. A 100% total return over 5 years equals ~15% CAGR.

How do I calculate absolute returns?

Absolute return = (Final Value - Initial Value) / Initial Value × 100. If you invested ₹10,000 and now have ₹15,000, absolute return is (15000-10000)/10000 × 100 = 50%. It doesn't consider time.

Should I include dividends in return calculation?

Yes, total return includes capital appreciation plus dividends received. A stock rising 10% with 2% dividend yield gives 12% total return. Reinvesting dividends compounds returns significantly over time.

What is the difference between nominal and real returns?

Nominal return is the stated return. Real return = nominal return - inflation. 12% nominal return with 6% inflation gives 6% real return. Real returns show actual purchasing power gain.

What is a good investment return?

Good returns vary by asset class: Equity 10-15% long-term, debt funds 6-8%, FDs 5-7%. Beat inflation (6-7%) at minimum. Compare returns to benchmark indices and similar products. Risk-adjusted returns matter more than absolute numbers.

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