CAGR Calculator

CAGR (compound annual growth rate) gives you a smooth picture of how your money grows, one year at a time, much better than just looking at regular total growth. It considers the compounding effect and shows a more accurate picture of how your money has been or might be growing. When you are planning for the future or making important money decisions, the CAGR calculator is your helpful guide. Example: Imagine you invested Rs.2,000. Fast forward 5 years and it has multiplied into Rs.5,000. At first glance, it seems like a growth of Rs.600 per year, which is 30% per year. However, using the CAGR formula [(Final Value / Initial Value) ^ (1 / Number of Years) - 1], the real growth rate is approximately 20.11%. Thus, this CAGR calculator is a tool that will help you assess the compounding effect correctly.

CAGR = ((Vfinal / Vinitial) ^ (1/t)) - 1 Vfinal = Final Value Vinitial = Beginning Value T = Time in years

a) Helps you understand the consistent growth rate of your investments with precise CAGR calculations. b) Compare the CAGR of different investment options, including mutual funds, stocks, and bonds. c) Helps you set realistic and achievable financial goals. d) Helps you get insights into different investment strategies like SIPs and lump sums and optimize your portfolio.