CAGR Calculator

About CAGR Calculator

The CAGR(Compound Annual Growth Rate) Calculator is an online tool for Finance which is used to calculate the Estimated returns gained from an investment over a set period taking into consideration the total amount of the investment and the final amount gained from the total investment after a set duration.

Features:

• Calculate absolute returns and annual returns (CAGR)
• Adjustable input values using sliders
• Visual representation of investment growth through a chart
• Reverse CAGR Calculator to determine the future value based on the starting value, CAGR, and number of periods

CAGR Formula:

The CAGR is calculated using the following formula:

CAGR = (Ending Value / Beginning Value)^(1 / n) - 1

Where:

• Ending Value = Final maturity value
• Beginning Value = Total investment amount
• n = Duration of the investment in years

Reverse CAGR Formula:

The Reverse CAGR Calculator uses the following formula to determine the future value:

Future Value = Starting Value * (1 + CAGR / 100)^n

Where:

• Starting Value = Initial investment amount
• CAGR = Compound Annual Growth Rate (in percentage)
• n = Number of periods (years)

The CAGR Calculator provides a convenient way to estimate the potential growth of your investments and make informed financial decisions.

differences between simple growth rate and compound annual growth rate below

• The simple growth rate is the amount by which an investment increases in total over the period of investment.

  The acronym CAGR is used to computing the internal annualised rate of return that would be needed for an investment to produce a change in value from an initial balance to an ending balance over a specified period of time. When comparing investments with different periods of time, CAGR results in an apples-to-apples measure.

• simple growth rate is Mainly used for total return over the full investment term.

  CAGR annualises the return to allow for comparability between investments of different time periods. It is the correct way to normalise returns in the context of investment analysis.