📊 CAGR with SIP Contributions
Inflation Adjusted CAGR: -
Total Contributions: -
Final Value: -
Inflation Adjusted Final Value: -
Understand Your Investments Better with the CAGR with SIP Contributions Calculator
Are you investing regularly through SIPs (Systematic Investment Plans) and wondering how your wealth grows over time? The CAGR with SIP Contributions Calculator helps you evaluate your investment growth, understand the impact of periodic contributions, and adjust for inflation — all in one place. Whether you’re a new investor or a seasoned one, this tool is designed to give you clarity on your returns.
What Is CAGR and Why Does It Matter?
Compound Annual Growth Rate (CAGR) is the rate at which your investment would have grown if it had increased at a steady rate, annually. It’s a useful metric to compare different investments or to evaluate the long-term growth of your portfolio. Unlike absolute return, CAGR smooths out volatility and gives a clearer picture of growth.
What Is a SIP (Systematic Investment Plan)?
A SIP allows you to invest a fixed amount at regular intervals (monthly, quarterly, half-yearly, yearly) instead of investing a lump sum. SIPs help average out your purchase cost and build disciplined investing habits. They are popular among mutual fund investors and are ideal for long-term wealth creation.
How to Use the Calculator?
- Enter Initial Investment: This is the amount you invested at the beginning.
- Enter Periodic Contribution: Specify the fixed amount you contribute monthly, quarterly, or yearly.
- Select Frequency: Choose how often you make these contributions (monthly, quarterly, or yearly).
- Set Number of Years: How long you plan to stay invested.
- Nominal CAGR (%): Use the slider or input box to set the expected annual growth rate before inflation.
- Inflation Rate (optional): Enter the average inflation rate to see the real (inflation-adjusted) returns. If there is a deflation, you can enter a negative value in this field.
Features of the Calculator
- Handles both one-time and periodic SIP investments
- Accounts for inflation to show real CAGR and final value
- A dynamic chart to visualize your returns
- Copy your investment summary with one click
- Mobile-friendly and easy to use
Advantages of This Tool
- Gives a realistic picture of investment growth over time
- Helps in goal planning and wealth tracking
- Simple and intuitive interface for beginners and pros
- Allows comparing returns across various inflation rates
Formula Used
The calculator uses the following financial formula to estimate the final value:
Future Value (FV) = P × (1 + r)^n + PMT × [((1 + r)^n - 1) / r]
Where:
- P = Initial Investment
- PMT = Periodic SIP contribution
- r = CAGR / frequency of contributions
- n = Total number of periods
Inflation-adjusted returns are computed using:
Real CAGR = [(1 + Nominal CAGR) / (1 + Inflation Rate)] - 1Practical Example
Suppose you invested ₹50,000 initially and contributed ₹2,000 every month for 10 years at a nominal CAGR of 12%. You also input an inflation rate of 6%.
- Total Contributions: ₹290,000
- Final Value: ₹599,152
- Inflation Adjusted Final Value: ₹334,564
- Real CAGR: ~5.66%
This gives you a clearer picture of your wealth’s actual purchasing power after adjusting for inflation.
Related Calculators
Frequently Asked Questions (FAQs)
1. Can I use this for SIPs in mutual funds?
Yes, this calculator is perfect for mutual fund SIPs, recurring deposits, or any investment with periodic contributions.
2. What if I skip the inflation rate?
If you don’t input an inflation rate, the calculator will only show nominal returns (without adjusting for inflation).
3. Is this CAGR the same as XIRR?
No. CAGR assumes a fixed annual rate, while XIRR accounts for irregular cash flows and is more accurate for varying SIP dates.
4. Does this show tax implications?
No, this calculator does not include taxes. It’s a pre-tax return estimator.
Limitations to Keep in Mind
- Assumes constant CAGR and contribution frequency
- Does not account for taxes, fees, or market volatility
- The inflation rate is assumed to be constant
- Not a substitute for financial advice
Final Thoughts
The CAGR with SIP Contributions Calculator is a powerful tool to project your investment growth realistically. It combines the benefits of compounding with regular contributions and inflation adjustment, giving you insights into how your money grows and what it can buy in the future. Whether you’re planning for retirement, education, or any financial goal, this calculator helps you make smarter, well-informed investment decisions.