Interest Rate Calculator

Find the exact interest rate (CAGR) needed to grow your money from an initial amount to a target amount over a set period.

5.0 yr

REQUIRED INTEREST RATE (CAGR)

14.87%

You need an annualized compound growth rate of 14.87% to grow โ‚น1.00 L into โ‚น2.00 L in 5.0 years.

๐Ÿ’ก What is the Required Rate of Return (CAGR) Calculator?

This calculator works in reverse: instead of telling you how much money you'll have, it tells you what annual growth rate (CAGR) you need to reach a financial goal. If you have โ‚น2 lakhs today and want โ‚น10 lakhs in 10 years, what interest rate do you need? This tool answers exactly that.

The calculation uses the CAGR formula backwards: Required Rate = (Target รท Principal)^(1/Years) โˆ’ 1. Once you know the required rate, you can evaluate whether it's achievable with real-world investments. A 12% required CAGR is reasonable for equity mutual funds. A 25% required CAGR is very risky and unlikely to be consistently delivered.

Reality check: If you need a 20%+ CAGR to meet your goal, you either need more time, more starting capital, or a lower target. No mainstream, regulated investment in India consistently delivers over 18% CAGR over a decade.

Interest Rate Calculator FAQ

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