Calculate Your CAGR Here

Total Inveted : 10000

Gains : 10000

Absolute Return : 100.00 %

Total Invested : 10000

Gains : 10000

CAGR Return : 41.42 %

What is Compound Annual Growth Rate (CAGR?)

CAGR, that stands for Compound Annual Growth Rate, is a metric used to measure the average annual growth rate of an investment over a specified period. It is a useful tool that helps investors assess their investment portfolio performance in terms of growth or decline over a given period. The standard practice while calculating the CAGR is to assume that the profits are reinvested at the end of each year. Therefore, CAGR may not be an exact representation of investment returns, it is still a valuable tool for comparing different investment options. You can either calculate the CAGR of investments manually or with the help of a CAGR calculator.

To use a CAGR calculator, investors can input starting and ending values to determine the annual growth rate. This metric is commonly used to assess the rate of return on mutual funds and can be compared to benchmark returns.

CAGR Calculator

How to Calculate Your Compound Annual Growth Rate (CAGR?)

You can calculate the the compound annual growth rate by using the CAGR formula mentioned below:


CAGR = (EV/BV)^1/n - 1

In this formula,

  • EV = the value of the investment at the end of the period for which you want to calculate the CAGR

  • BV = the value of the investment at the beginning of the period for which you want to calculate the CAGR

  • n = the number of years for which you are calculating the CAGR

So, Assume you make an investment of Rs.1,00,000 and after 5 years, the value of investment stands at Rs.2,50,000. In this case, if we apply the formula we the following:

EVBVnCAGR (in %)
2,50,0001,00,000520.11%

CAGR = (2,50,000/1,00,000)^1/5 - 1 = 20.11%

Benefits of Online CAGR Calculator

One Number

Convenience:

You can use the calculator on any device like a smartphone or laptop, as long as you have an internet connection. In addition, your calculation is automated so you don’t have to worry about performing manual calculations.

Two Number

Speed:

The calculator will instantly give you the results as soon as you enter the beginning value, end value, and the number of years.

Three Number

Accuracy:

The CAGR calculator accurately works on the input. As long as you enter the correct variables, you will get flawless results.

Foure Number

User-Friendly:

Share India has one of the most user-friendly and free online CAGR calculators. So, you will have a seamless experience while using the calculator.

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Frequently Asked Questions on the CAGR Calculator

Calculating the CAGR helps investors measure the growth of their investments over a time period. That allows investors to compare the performance of their investment portfolio against benchmarks and other asset classes. Learning the performance can help investors evaluate their investing strategies and make adjustments if required.

Yes, your CAGR can be negative if the value of your investment portfolio is decreasing over time.

Your CAGR is a type of annualised return, but it is not the same as the standard annualised return calculation. That is because the CAGR considers the effects of compounding, whereas standard annualised return does not.

Yes, everyone can use the Share India CAGR calculator online for free.

There is no universal answer to this question, as your CAGR your investment portfolio generates depends on the assets your investment in. However, when it comes to pure equity portfolios, most investors aspire to at least meet or match the index returns.
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