The Compound Annual Growth rate (CAGR) calculator is an online tool that helps you estimate the average annual growth rate of your investment over a specific period, assuming the profits were reinvested each year. By entering the intial value, final value, and the number of years, the calcula...
"Number of Years"represents the total number of years over which the investment or asset has grown. Example of CAGR Suppose a company's revenue was 1 million rupees in the year 2020 and it grew to 1.5 million rupees in the year 2023. ...
A compound annual growth rate (CAGR) measures the rate of return for an investment — such as a mutual fund or bond — over an investment period, such as 5 or 10 years. The CAGR is also called a "smoothed" rate of return because it measures the growth of an investment ...
Following are the returns and the investment value calculated using the mutual funds calculator for direct vs regular plans, considering an investment of ₹6 lakh over 10 years: FactorsDirectRegular Expected return before expense ratio (p.a.) [A] 13% 13% Expense ratio [B] 1% 1.75% ...
You have gained ₹ 9,00,000 over the period of 10 years. CAGR 25.89% Absolute Returns 900% How to use this calculator? Compound Annual Growth Rate CAGR stands for Compound Annual Growth Rate, which is a commonly used financial metric to measure the average growth rate of an investment ov...
To put it more simply, CAGR represents theinterest ratethat gets you from the present value to the future value over a specified time period, taking into account forinterest compounding. However, this is only a hypothetical value which does not account for volatility. This means that in reality...
and USD 2M in 2022, the YoY growth from 2021 to 2022 would be 33%, but the CAGR over the two-year period would be 41%. CAGR is particularly useful for long-term growth projections, as it accounts for variations in growth rates over multiple years, making it a better indicator of sust...
CAGR is a measurement of the mean annual growth rate of an investment over a specified time period. It smoothes out the returns of an investment as if it had grown at a steady rate on an annually compounded basis. By considering metrics such as IRR, CAGR and NPV in combination, you can...
Last updated: Jun 10, 2024 Method 1 – Calculating CAGR with a Generic Formula The following dataset contains some compounded amounts over successive years. The initial value is $5000, which has been compounded to $6850 after a period of 6 years. Using these values, we’ll calculate the CA...
When calculating the CAGR, you must first add the periods and the values for each period. To do this, you need a column focused on Years and another column focused on the Amount. If you are still unsure, then the information below will explain all the things you need to know. Here are...