CAGR Calculator

CAGR Growth Table

Investment Growth

Investment vs Return

CAGR Calculator – Your Ultimate Guide

Welcome to our CAGR (Compound Annual Growth Rate) calculator! If you’re wondering how your investments are growing over time, this tool will help you calculate the exact growth percentage.

What is CAGR?

CAGR stands for Compound Annual Growth Rate. It tells you how much an investment has grown, on average, each year over a specified period. It’s perfect for tracking investment performance in a consistent and understandable way.

How to Use the CAGR Calculator?

Using this calculator is super easy! Just follow these simple steps:

  1. Enter the Initial Value (the amount you invested).
  2. Input the Final Value (the current value of your investment).
  3. Specify the Number of Years you held the investment.
  4. Click on the “Calculate CAGR” button.

Understanding Your Results

Once you hit the calculate button, you’ll see the calculated CAGR percentage. This number shows how much your investment has grown on average each year.

Why Use CAGR?

CAGR helps you:

  1. Compare different investments easily.
  2. Measure the performance of mutual funds, stocks, and other assets.
  3. Understand long-term investment trends.

Formula Used in This Calculator

We use the standard CAGR formula:

CAGR = [(Final Value / Initial Value)^(1 / Years)] – 1

Tips for Better Investment Planning

Here are some pro tips to make the most of your investments:

  1. Regularly track your CAGR to stay informed about your portfolio.
  2. Compare CAGR across different investment options before making decisions.
  3. Remember, CAGR doesn’t consider market volatility – consider other factors too!

Frequently Asked Questions

Q: Can CAGR be negative?

A: Yes, if your final value is less than your initial investment, the CAGR will be negative.

Q: Does CAGR include dividends?

A: No, it only considers value appreciation, so include dividends separately in your calculations.

We hope you find this calculator useful in making informed investment decisions. Happy investing!