Investment Return Converter
Calculate and convert between ROI, CAGR, annual returns, and other investment performance metrics. Analyze your investments with accurate return calculations.
Investment Details
Calculate/Convert
CAGR from Total Return
Select the type of return calculation or conversion
Initial Investment
₹1,00,000
₹
Enter the initial investment amount (₹1,000 to ₹1 Crore)
Final/Current Value
₹1,50,000
₹
Enter the current or final value of investment
Investment Period
3 years
years
Enter the investment holding period (1 to 30 years)
CAGR (Annualized Return)
14.47%
Total Return
₹50,000
50%
ROI
14.47%
Annual Return
₹50,000
Absolute Return
8.47%
Real Return (Inflation-adjusted)
Performance Metrics
₹1,00,000
Total Invested
₹1,50,000
Current Value
14.47%
Annualized Return
3 years
Holding Period
Return Comparison
Your Investment
14.47% CAGR
Bank FD
7.0% CAGR
Sensex (10Y Avg)
12.0% CAGR
Inflation
6.0% CAGR
Future Projection
5 Years Later
At same CAGR
₹1,96,715
+₹96,715
10 Years Later
At same CAGR
₹3,87,000
+₹2,87,000
20 Years Later
At same CAGR
₹14,97,000
+₹13,97,000
₹1 Cr Target
Years needed
17 years
From ₹1L
Investment Analysis
Your investment of ₹1L grew to ₹1.5L in 3 years, delivering 14.47% annualized returns. This outperforms bank FDs (7%) and beats inflation (6%). Consider continuing or increasing this investment.
About Investment Return Converter
The Investment Return Converter helps you calculate and compare different investment performance metrics including ROI, CAGR, annual returns, and absolute returns. Understand your investment performance and make informed decisions.
Key Investment Return Metrics
CAGR (Compound Annual Growth Rate)
The annualized rate of return assuming investment grows at a steady rate each year.
Formula: CAGR = (EV/BV)^(1/n) - 1
Example: ₹1L to ₹1.5L in 3 years = 14.47% CAGR
Best for: Comparing investments with different time periods
ROI (Return on Investment)
Percentage gain or loss relative to the initial investment amount.
Formula: ROI = (Gain from Investment - Cost of Investment) ÷ Cost of Investment
Example: ₹1L to ₹1.5L = 50% ROI
Best for: Simple profitability comparison
Annual Return
The return earned each year, can be simple or compounded.
Formula: Annual Return = (End Value ÷ Start Value)^(1/Years) - 1
Example: 14.47% annual return for 3 years
Best for: Year-by-year performance analysis
Absolute Return
Total gain or loss in absolute rupee terms, regardless of time period.
Formula: Absolute Return = Final Value - Initial Investment
Example: ₹1L to ₹1.5L = ₹50,000 absolute return
Best for: Understanding total monetary gain
Conversion Formulas
| Conversion | Formula | Example | When to Use |
|---|---|---|---|
| ROI to CAGR | CAGR = (1 + ROI)^(1/n) - 1 | 50% ROI in 3 years → 14.47% CAGR | When comparing investments of different durations |
| CAGR to ROI | ROI = (1 + CAGR)^n - 1 | 14.47% CAGR for 3 years → 50% ROI | When calculating total return over period |
| Annual to CAGR | CAGR = Annual Return (if consistent) | 15% annual → 15% CAGR | When returns are consistent each year |
| Absolute to ROI | ROI = Absolute Return ÷ Initial Investment | ₹50K gain on ₹1L → 50% ROI | When you know total gain amount |
| Nominal to Real | Real Return = (1 + Nominal) ÷ (1 + Inflation) - 1 | 15% nominal, 6% inflation → 8.49% real | When considering purchasing power |
Benchmark Returns Comparison
Savings Account
3-4%
Very Low Risk
High Liquidity
Emergency funds, short-term
Fixed Deposits
5-7%
Low Risk
Medium Liquidity
Conservative investors, seniors
Debt Funds
6-8%
Low-Medium Risk
High Liquidity
Short to medium term goals
Balanced Funds
9-12%
Medium Risk
Medium Liquidity
Medium term goals (3-5 years)
Equity Funds
12-15%
High Risk
Medium Liquidity
Long term goals (5+ years)
Direct Stocks
15%+
Very High Risk
High Liquidity
Experienced investors, high risk tolerance
Investment Strategy Tips
Goal-Based Investing
- Emergency Fund: 6 months expenses in liquid assets
- Short-term Goals (1-3 years): Debt funds, FDs
- Medium-term Goals (3-7 years): Balanced funds, hybrid
- Long-term Goals (7+ years): Equity funds, stocks
- Retirement: Diversified portfolio with NPS, EPF
Risk Management
- Diversification: Spread across asset classes
- Asset Allocation: Match allocation to goals & risk
- Rebalancing: Regular portfolio adjustment
- Risk Assessment: Understand your risk tolerance
- Insurance: Protect against unforeseen events
Performance Analysis
- Regular Review: Quarterly or half-yearly
- Benchmark Comparison: Compare to relevant indices
- Risk-Adjusted Returns: Consider Sharpe ratio
- Tax Efficiency: Consider after-tax returns
- Cost Analysis: Watch expense ratios, fees
Tax Planning
- Tax-Saving Investments: 80C, 80D deductions
- Long-term Capital Gains: Lower tax rates
- Tax-Loss Harvesting: Offset gains with losses
- Retirement Accounts: NPS, PPF tax benefits
- Dividend vs Growth: Consider tax implications
Rule of Thumb Calculations
Rule of 72
Years to double = 72 ÷ Annual Return %
At 12% return: 72 ÷ 12 = 6 years to double
Rule of 114
Years to triple = 114 ÷ Annual Return %
At 12% return: 114 ÷ 12 = 9.5 years to triple
Rule of 144
Years to quadruple = 144 ÷ Annual Return %
At 12% return: 144 ÷ 12 = 12 years to 4x
4% Withdrawal Rule
Safe withdrawal = Portfolio × 4% annually
₹1Cr portfolio → ₹4L/year safe withdrawal
Note: This calculator provides estimates based on historical data and standard investment formulas. Past performance is not indicative of future results. Investment returns are subject to market risks. Always consider your risk tolerance, investment horizon, and financial goals before investing. Consult with a qualified financial advisor for personalized investment advice.