CAGR Calculator


CAGR Calculator

(Compounded Annual Growth Rate)

Use CAGR Calculator & See your progress in second

CAGR Calculator

CAGR stands for Compounded Annual Growth Rate is a measure of the average yearly growth of your business and investments over a certain period of time. CAGR tells you the average rate of return you have earned every year. It is very useful for all investors because it is an accurate measure of investment growth (or fall) over time.

Such a calculator is easily available online, but user-friendliness is most important while calculating CAGR returns. Trademint’s online CAGR calculator brings you an organized and accurate approach to calculating your business and investment CAGR. We provide a visual chart representation that shows easy calculation.

How does our CAGR calculator work?

A CAGR calculator is an online financial tool used by investors to estimate annual returns on their final value, Here’s how it typically works:

All CAGR calculators use a specific method to find annual compounded returns. Our calculator uses the following formula to compute CAGR returns.

Above is the formula that we have used in this CAGR Calculator:

CAGR = ((Ending Value / Starting Value) ^ (1 / Number of Periods)) – 1

In the above formula: The ending value is the final value you generate within the given time, Starting Value is the Initial value of investment & Number of Periods is the total number of years you were invested.

When you use Tradmint’s CAGR calculator please provide all required variables at their given input section. You may also use our graph representation to show yearly calculations.

Starting Amount: This is the initial amount when you start the business or investment.

Ending Value: Here, you need to enter the value of the investment at maturity.

Investment Duration / Tenure (Upto 50 Years): This is the total time period that you stayed invested (in years *upto 50)

Final Result: Once you provide all the input the final result of our CAGR calculator is the tota gains you have made from the investment along with the CAGR Returns (in percentage). Also, we add total graphical presentation on your total investment value section to identify your growth scenario. We use graph charts for visual representation to understand better on yearly basis how your money perform.

Our CAGR calculator helps you to determine the true returns on a yearly basis. Using this CAGR calculator you can save time and other resources as it is completely free and user-friendly.

CAGR Investment Example

For example, suppose you invest Rs. 20,000 in a mutual fund from 2018. After five years, at 2023 the total value of your investment has grown to Rs. 35,000 Now we find the the CAGR of your investment over this five-year period.

  • Starting Value: Rs. 20,000
  • Ending Value: Rs. 35,000
  • Duration/Tenure: 5 years

The formula for CAGR return calculations shows following result:

CAGR = ((35,500 / 20,000) ^ (1 / 5)) – 1

CAGR = 11.84%

In this example, CAGR of your investment over the five-year period is 11.84%. This indicates that, on an average, your investment grew by 11.84% annually over those three years.

Manually calculating CAGR return using this formula is more time-consuming, So we provide an online CAGR calculator by Trademint is a much simpler way of computing your investment returns within a few seconds.

What is the difference between CAGR return and Absolute Return?

Absolute return tells you the total growth in your investment value but ignores the time period. Where, CAGR return provide the total average yearly growth rate in a given investment. Absolute return is useful if the short time period like less than a year.

Advantages of Trademint’s CAGR Calculator

TradeMint offers the best CAGR calculator, which we provides the following advantages

  • Accuracy: Reduces the risk of manual errors and gets the results within seconds.
  • Easy to Use: Our calculators require only basic inputs, making them accessible to everyone.
  • Speed: Provides instant results within a fraction of a second.
  • We offer additional features and options, such as the visual representation of CAGR returns in a yearly format.
  • You can use the compound annual growth rate calculator to compare past stock performance to that of peers or this whole industry.

Trademin’s CAGR tool is valuable for every investor to make informed decisions and track the progress of your portfolio over time.

Final Words

When it comes to financial planning, clarity is the most important key for all of us. So, if you are calculating investment returns, or business growth, you can make use of our CAGR calculator which saves time and effort and gets accurate results within the blink of an eye.

Remember: CAGR is a powerful tool, but it’s a snapshot of average growth. Don’t forget to consider market performance, diversification, and other factors.