CAGR Calculator
CAGR Calculator
Compounded Annual Growth Rate (CAGR) shows the average annual growth rate of your investments in a given time period. Thus, giving you a comprehensive idea on the returns of your investments.
While investing in certain financial products like stocks, mutual funds, real estate, etc when the price of the assets go up significantly in a year, it attracts a lot of novice investors to start buying these assets, which is incorrect. One must look for consistent growth rather than one time appreciation in assets and that can be determined by the CAGR% of the asset you are investing in.
How does the CAGR Calculator work?
In order to use the CAGR Calculator, one should know the following terms:
Principal is the initial amount that an individual has invested.
Tenure is the period for which the principal is invested.
Maturity Amount is the total appreciated value of the asset over the years.
CAGR% is the compounded annual growth rate of your investments in a given time period.
Formula:
CAGR% = (FV / PV) 1/n – 1
Example:
Assume you invested Rs 10000 in a mutual fund scheme that has appreciated to Rs. 18500 in 3 years.
CAGR% = (18500 / 10000) 1/3 – 1 = 22.76%
Why should you use a CAGR Calculator online?
Using the CAGR calculator online helps you in making a financial decision on whether to invest or not in a certain financial asset? on a real-time basis. Thus, helping you grab an opportunity quick.
Advantages of using a CAGR Calculator:
Listed below are few advantages of using a CAGR Calculator:
The CAGR calculator helps you in calculating the annual growth rate on investments irrespective of the currency denomination, that is, you can use it for calculation in INR, USD, JPY, EUR or any currency of your choice.
CAGR Calculator helps you in making financial decisions quickly that is because you can compare the various financial opportunities on their compounded annual growth rate on a real time basis.
The CAGR Calculator does all the mathematics functions online with few inputs on your end. No coding or doing the maths is needed, this makes it easy to operate.
You can view the average annual growth rate of your investments with a CAGR Calculator, which helps in making a quick financial decision on existing investments as well as new opportunities.