CAGR (Compound Annual Growth Rate) Calculator
Find out the growth rate of your investment portfolio. The CAGR (Compound Annual Growth Rate) calculator calculates the average growth of your investment portfolio over a given period.
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Total Invested: 10000
Absolute Return: 100%
Total Invested: 10000
CAGR Return: 100%
What is CAGR (Compound Annual Growth Rate)?
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.
How to Calculate CAGR (Compound Annual Growth Rate)?
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:
|CAGR (in %)
CAGR = (2,50,000/1,00,000)^1/5 – 1 = 20.11%
How Can a CAGR Calculator Help You?
The Share India CAGR calculator saves you the trouble of using the formula and calculating the CAGR manually. Using an online compound annual growth rate calculator can help you instantly find the CAGR of your investments. All you do is enter three values: the beginning value (BV), ending value (EV), and the number of years (n). The CAGR is then calculated in an instant.
Benefits of Online CAGR Calculator
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.
The calculator will instantly give you the results as soon as you enter the beginning value, end value, and the number of years.
The CAGR calculator accurately works on the input. As long as you enter the correct variables, you will get flawless results.
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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.
CAGR stands for Compound Annual Growth Rate. It measures the annual growth rate of an investment over a specified period of time, taking into account the effect of compounding. CAGR smooths out the returns and provides a constant annual rate of return over the investment period.
CAGR allows investors to measure and compare returns over time. It provides a standardized way to evaluate the annual return of different investments. The CAGR return calculator helps assess investment performance and make decisions about asset allocation.
To calculate the CAGR you can use the Share India CAGR calculator online. For your reference the CAGR formula:
CAGR = (End Value/Start Value)^(1/Number of Years) – 1
For example, if you invested Rs.100 and it grew to Rs.150 over 3 years, the CAGR would be:
CAGR = (Rs150/Rs100)^(1/3) – 1 = 14.5%
To calculate CAGR, you need the start value, end value, and number of years between them.
- Initial investment amount
- Final investment value
- Number of years invested
You can use the Share India CAGR calculator. It’s simple to use, just enter your input such as the start value, end value, and number of years, and it will automatically calculate the percentage. Online CAGR return calculators from Share India provide a quick and convenient way to find CAGR.