CAGR Calculator

What is CAGR?

CAGR, or Compound Annual Growth Rate, is the rate at which investment grows annually over a specific time period assuming the profits are reinvested annually. This will provide a smooth annualized return, which makes it a very important tool for analyzing investment performance.

Why is CAGR Important?

• It reveals the actual annual growth rate of an investment in a year.
• It cancels out the impact of short-term market movements.
• It helps in comparison of various investments on a uniform measuring scale.
• It is extensively used for goal-based financial planning.

What is a CAGR Calculator?

Using a CARG calculator on the internet, you can easily calculate how much an investment's CAGR, or the annualized return over a particular period of time, is. The tool does complicated math to give you some quick information regarding how any given investment is faring.

How Is CAGR Calculated?

CAGR is calculated as:

CAGR= (EV/BV)^(1/n) - 1

Where:

EV = Investment's Ending Value
BV = Investment's Beginning Value
n = Years

For example, if an investment grew from ₹1,00,000 to ₹2,00,000 in 5 years, then its CAGR will be:

CAGR= (2,00,000/1,00,000)^(1/5)-1 = 14.87%

Who can use this CAGR Calculator?

The CAGR calculator is useful for:

1. Investors & Traders – To measure the performance of stocks or mutual funds.
2. Financial Planners – To design long-term investments.
3. Business Owners – To measure the growth of revenues or profits.
4. Students & Researchers – To understand financial trends.

How to use the Equirus Wealth CAGR Calculator?

Using the Equirus Wealth CAGR Calculator is easy:

1. Enter Initial Value – Enter the initial amount of your investment.
2. Enter Final Value – Input the final amount after the investment term.
3. Select Investment Period – Input the number of years.
4. Click 'Calculate' – Get CAGR instantly.

What are the Advantages of a CAGR Calculator?

• No Calculation Error – Avoid human error in calculation.
• Time Saving – It generates results fast with accuracy.
• Easier Comparison – Helps to make comparisons between multiple investments.
• Improved Decision Making – Facilitate proper financial planning.