CAGR (Compound Annual Growth Rate) Calculator
CAGR (Compound Annual Growth Rate) is commonly used in finding out how well a business is performing in today’s competitive market. It shows the growth of an organisation, and you can easily determine the growth rate and the lack of itusing a CAGR (Compound Annual Growth Rate) calculator.
This calculator is available online. Our website provides you a online CAGR (Compound Annual Growth Rate)calculator which helps you in bringingan organized and accurate calculation to your business CAGR.
How can a CAGR(Compound Annual Growth Rate) Help You?
If you are a business owner, then CAGR can show a lot of factors that are otherwise failed to notice. The growth based on compound annual growth rate (CAGR) takes into consideration the element of time. Therefore, CAGR is a better indicator of growth over a certainperiod of time.
CAGR indicates the accurate rate of an investment’s growth taking into account that it grows at the same rate and the returns are reinvested.
A CAGR(Compound Annual Growth Rate) calculator helps you finding out the true returns on investment annually. In this regard, using our online CAGR(Compound Annual Growth Rate) calculator can save your time and alsoit is completely free.
This calculator can also help youin case:
- Your business is evolving with time and lets you know if the profitsgenerated is being invested in the right way.
- It will help you to assess your investment options.
- The comparative growth of your organization as regards to the market leaders in your business section.
How to CalculatetheCAGR(Compound Annual Growth Rate)?
CAGR (Compound Annual Growth Rate) formula is:
CAGR = (FV / PV) 1/n–1
Here,
|
FV |
Future value |
|
PV |
Time value |
|
N |
Annual Time Period |
An example has been provided:
If you have a starting investment of Rs. 1 Lakh in a particular business then, it accounts for the PV (Time Value). If the total investment has exapnd to Rs 10 Lakh (FV) Future Value after 5 years (N) Annual Time period, then CAGR is:
(10,00,000/1,00,000)1 / 5–1 or 0.589
Therefore, the CAGR(Compound Annual Growth Rate) percentage is CAGR x 100 or 58.9%.
How to use CAGR(Compound Annual Growth Rate) calculator?
You can use our CAGR calculator online without any fees or subscription. Follow these steps:
- Input your budding investment amount.
- Input the expected value of the investment after a specific time period.
- Input the number of years or months for which you want to use the CAGR (Compound Annual Growth Rate)calculator.
After entering all the respective figures the calculator will show you the results in seconds.
Advantages of using the online CAGR(Compound Annual Growth Rate) calculator
Several advantages of using our calculator:
- It offers you a detailed observation of your rate of interest.
- If you are an investor then you can take the help of a mutual fund CAGR calculator. It will assist you to find out how much you need to invest to double your returns over a specific time period.
- Compare your businessreturns with standard options and assess the performance.
- You can make long-term capital inflow plans.
- Accept a globally recognized financial platform to get accurate results in a short duration.