✅ Why use CAGR for SIP?

• Measures consistent growth despite market ups and downs.
• Helps compare SIP returns against benchmarks (e.g., FD, Nifty 50).
• Adjusts for irregular cash flows (monthly/quarterly investments).

⚠ Note: For SIPs, XIRR (Extended Internal Rate of Return) is more accurate than simple CAGR. However, CAGR gives a quick estimate if you treat SIP as a single investment. If you need to calculate traditional CAGR for lump-sum comparisons, try our comprehensive CAGR calculator which handles both single investments and complex scenarios.

How to Use This SIP CAGR Calculator

1. Enter your SIP details:
   • Total invested amount (e.g., ₹1,20,000 over 5 years)
   • Current value (e.g., ₹1,80,000)
   • Investment duration (e.g., 5 years)
2. Get results:
   • CAGR % (Annualized growth rate)
   • Absolute return (Total profit/loss)

📌 Pro Tip: For exact SIP returns (with varying contributions), use our XIRR Calculator. For traditional investment growth calculations, our standard CAGR calculator provides precise results for lump-sum investments.

[EMBED INTERACTIVE SIP CAGR CALCULATOR HERE]

(Example: ₹10,000/month SIP for 10 years → ₹20 lakhs maturity → 12% CAGR approx.)

SIP CAGR Formula (Simplified)

Since SIPs involve multiple investments, the formula adjusts for periodic cash flows:

CAGR=(Final ValueAverage Investment)1Years−1\text{CAGR} = \left(\frac{\text{Final Value}}{\text{Average Investment}}\right)^{\frac{1}{\text{Years}}}-1 CAGR=(Average InvestmentFinal Value​)Years1​−1

Where:

• Average Investment = Total invested amount / 2 (approximation for regular SIPs)

Example Calculation:

• Total invested: ₹2,40,000 (₹5,000/month for 4 years)
• Final value: ₹3,60,000
• CAGR: (₹3,60,000 / ₹1,20,000)^(1/4) – 1 ≈ 31.61%

🔧 Excel formula for SIP CAGR:

excel=((FV / (Total Investment/2))^(1/years))-1

Need to calculate CAGR for individual stocks or funds? Use our main CAGR calculator for point-to-point return analysis.

SIP CAGR vs. Lumpsum CAGR

FactorSIP CAGRLumpsum CAGRCash FlowPeriodic investmentsOne-time investmentVolatilityRupee-cost averaging reduces riskExposed to market timing riskBest forLong-term investors (5+ years)Investors with a lump sum amount

💡 Key Insight:

• SIPs often have lower CAGR than lumpsum in bull markets but protect downside in crashes.
• To compare your SIP performance against lump-sum alternatives, calculate the potential returns using our CAGR calculator with your total investment amount as a single entry.

Real-World SIP CAGR Examples

Case 1: Equity Mutual Fund SIP

• Investment: ₹10,000/month for 12 years
• Final value: ₹30 lakhs
• CAGR: ~14% (vs. FD at ~6-7%)

Case 2: Index Fund SIP

• Investment: ₹15,000/month for 8 years
• Final value: ₹25 lakhs
• CAGR: ~10% (matching Nifty 50 returns)

Want to see what these investments would have returned as lump-sum? Input the total invested amounts (₹14.4 lakhs and ₹14.4 lakhs respectively) into our CAGR calculator to compare different investment strategies.

Benchmarking Your SIP Performance

To truly understand if your SIP is performing well, compare its CAGR against:

• Market indices (Nifty 50, Sensex)
• Fixed deposits (~6-7% annually)
• Inflation rates (~6% in India)
• Gold returns (~8-10% historically)

Use our versatile CAGR calculator to quickly compute returns for different asset classes and time periods, helping you make informed investment decisions.

Limitations of SIP CAGR

🚨 When CAGR can mislead:

• Short-term SIPs (<3 years): Market cycles distort returns.
• Variable SIP amounts: Use XIRR for irregular investments.
• Dividend reinvestment: CAGR ignores dividend compounding.

Alternative Analysis: For comprehensive investment analysis beyond SIP, our main CAGR calculator offers additional features like inflation adjustment and tax considerations.

FAQ: SIP CAGR Explained

Q: Is SIP CAGR the same as mutual fund returns?

A: No. Fund returns are point-to-point, while SIP CAGR adjusts for monthly contributions. To see fund-level performance, use our standard CAGR calculator with NAV data.

Q: What’s a good CAGR for SIP investments?

A:

• 12-15% CAGR: Strong (equity funds)
• 8-10% CAGR: Moderate (hybrid funds)
• <6% CAGR: Underperforming (consider switching funds)

Q: Why is my SIP CAGR lower than the fund’s 10-year return?

A: SIPs average out returns over time, while lumpsum benefits from early compounding. Calculate what a lump-sum investment would have returned using our CAGR calculator to see the difference.

Q: How do I compare SIP returns with other investments?

A: Convert all investments to annualized returns using CAGR. Our comprehensive calculator handles various investment types, making comparison easier.

Advanced SIP Analysis Tips

Beyond Basic CAGR:

1. Rolling Returns: Analyze SIP performance across different market cycles
2. Risk-Adjusted Returns: Consider volatility alongside CAGR
3. Benchmark Comparison: Use our CAGR calculator to compute index returns for the same period
4. Tax Impact: Factor in LTCG and STCG implications

Try Our SIP CAGR Calculator Now

“How well is your SIP performing?”

1. Enter your SIP details above.
2. Compare against inflation (6%) and benchmarks.
3. Optimize your portfolio with data-driven insights.

📚 Next Steps:

• Learn how to increase SIP returns
• Explore top-performing SIP funds
• Calculate traditional investment returns with our CAGR calculator
• Compare SIP vs lump-sum strategies using both calculators

Investment Strategy: SIP + Lump-Sum Hybrid

Smart investors often combine both approaches:

• Monthly SIP: For discipline and rupee-cost averaging
• Opportunistic lump-sum: During market corrections

Track performance of both components separately using our SIP calculator above and the main CAGR calculator for lump-sum investments.