Gold CAGR Calculator
Gold "doubled in ten years" sounds impressive. This turns any two gold prices into a yearly percentage you can compare directly against a fixed deposit or an index fund.
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How to use this calculator
- Enter price per gram when you bought
- Enter price per gram now
- Enter years held
- Enter quantity — Only used to show the rupee value — the CAGR does not depend on it.
- Read the result — it updates as you type.
The formula used
CAGR = [ (Price now ÷ Price then)1/t − 1 ] × 100
- t
- Years held
- Price
- Per gram, at the same purity both times
Because CAGR uses a ratio, the quantity cancels out — 10 grams and 500 grams give the same percentage. Just make sure both prices are for the same purity: comparing a 22K price with a 24K price would overstate or understate the return by about 8%.
Worked example
Gold bought at ₹3,000 a gram, now ₹7,200 a gram, 10 years later.
- Price ratio7,200 ÷ 3,000 = 2.4
- 1 ÷ t0.1
- 2.40.1 = 1.091493
- (1.091493 − 1) × 100 = 9.15% a year
Gold rose 140% in total, which is 9.15% a year — solid, and comfortably ahead of typical fixed deposit rates over that stretch.
Judging gold's performance honestly
Gold produces no income. It pays no interest, no dividend and no rent. Every rupee of return comes from the price being higher when you sell than when you bought.
Pick your period carefully
Gold's returns depend enormously on the start and end dates. There have been decade-long stretches where it went nowhere, and short bursts where it doubled. A CAGR from a well-chosen starting point can flatter it badly — try a few different periods.
Compare against the right benchmark
The useful comparison is inflation plus what safe alternatives paid. Gold beating 6% inflation by three points is a genuinely good real return; gold at 5% while deposits paid 7% was not.
This CAGR ignores costs
Making charges, GST and buy-back deductions can remove several years of return on jewellery. For the return you actually pocket, use the Gold Profit/Loss Calculator.
Tips and common mistakes
Getting more out of it
- Try several start dates. Gold's returns depend heavily on the window chosen, and a flattering one is easy to pick by accident.
- Compare the answer against inflation for the same years before deciding gold "did well".
Mistakes to avoid
- Mixing purities between the two prices, which can shift the answer by several percent.
- Reading a strong CAGR from a short period as a long-run expectation. Gold has had decade-long flat stretches.
- Forgetting this is the pure price return — charges on jewellery are handled by the Gold Profit/Loss Calculator.
Frequently asked questions
What has gold's long-term CAGR been?
It depends entirely on the window. Over very long periods gold has broadly kept pace with or modestly beaten inflation, with long flat stretches in between. Enter your own dates and prices rather than relying on a headline figure.
Does quantity affect the CAGR?
No. CAGR is a ratio of prices, so 1 gram and 1 kilogram give the same percentage. Quantity only affects the rupee amounts shown.
Should I use 22K or 24K prices?
Whichever matches what you own — but use the same purity for both prices. Mixing them produces a meaningless number.
Does this include making charges?
No. This is the pure price return. Charges are handled by the Gold Profit/Loss Calculator.
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