Understanding CAGR

The stock market doesn't grow in a straight line. One year your portfolio might be up 20%, the next it might be down 5%. Compound Annual Growth Rate (CAGR) smooths out this volatility. It tells you the steady, annual rate of return your investment would have needed to grow from its starting balance to its ending balance.

Why Combine Lump Sums & Monthly Investments?

Most people don't invest just once. Real-world investing usually involves dropping a lump sum to start (like a bonus or savings), followed by steady monthly investments (like a SIP). This calculator accurately models both streams simultaneously, applying compound interest to the lump sum while dynamically compounding your monthly additions.