CAGR Calculator (Compound Annual Growth Rate)

CAGR is the annual rate of growth/returns that one earns on the initial invested amount. It is the same rate of returns by which an initial investment would grow each year to achieve the ending value. CAGR assumes steady and consistent growth rates.

Calculate CAGR by inputting the three variables given below:

  • Initial invested amount
  • Expected eventual investment value
  • Investment duration
Initial investment value
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₹ {{calcData.PcMax | toIndianCurrency }}
Final investment value
₹ {{ calcData.Pc | toIndianCurrency }}
₹ {{calcData.fcMax | toIndianCurrency }}
Duration of investment
{{calcData.ncMin}} yr
{{calcData.ncMax}} yrs
CAGR(%)
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(fees include)
Initial value
₹ {{ calcData.Pc | toIndianCurrency}}
Final value
₹ {{ calcData.fc | toIndianCurrency}}

How to calculate CAGR?

Imagine Mr. Vikram invested ₹ 10000 in the market. After 3 years, he has ₹ 15000. As he wishes to know how much returns he earned every year, he can put to use the equation provided below. (assuming he has made no added investments in between).

CAGR = (Ending Value / Initial Value) ^ (1 / Time Period) – 1

CAGR = (₹ 15,000 / ₹ 10,000) ^ (1 / 3) – 1
= 14.47%

Ending Value = ₹ 15,000
Initial Value = ₹ 10,000
Time Period = 3 yrs

Mr. Vikram has earned 14.47 % each year on his investments.

Benefits

  • CAGR indicates the growth of a business or an investment over time quite correctly. Become aware of how much your money has grown annually over a certain period by observing CAGR.
  • By using just one CAGR formula, you can compare many investment products. So you save your precious time.

How does one calculate the rate of growth of an investment over a long period?

There’s a straightforward metric called the CAGR or Compounded Annual Growth Rate, which expresses the effect of compounding while calculating the growth rate of your investments. CAGR indicates the compounded returns you earn on an annual basis irrespective of the annual performance of your investment. Most likely, your investment does not grow at the same rate every year. At times it rises, at times it falls, perhaps even generates negative returns. CAGR lets you know how much your investment grew over a period of several years.

Disclaimer

This calculator is meant to be used for indicative purposes only and yields calculation/result based on the information provided by the user and is only for the educational/understanding purposes and it should not be relied upon in making development or implementation of any investment strategy. It may show results which might not be accurate or as per the updated rules/regulations/bylaws. User/s before making any decision should do independent research about the merit and facts affecting the decision. Walue does not take the responsibility/liability nor does it undertake the authenticity of the figures calculated therein. Walue shall not be responsible/accountable for any loss/damages whatsoever and makes no warranty about the accuracy of the calculators/reckoners. Walue do not  solicit, recommend, offer any brand, equity, commodity or security in any manner while using this calculator and nothing on this website shall be construed so. The examples do not claim to represent the performance of any security or investments. In view of the individual nature of tax consequences, each investor is advised to consult his/her own professional tax advisor before making any investment decisions on the basis of the results provided through the use of this calculator. All brand names, logos and/or trademarks are the property of their respective owners, which are used here for identification/ understanding/ educational purposes only, and do not necessarily imply product endorsement or affiliation with us. It shall not be construed in any manner and in any circumstance that the given brand, logo and or endorsement are being claimed here.