Reverse CAGR Calculator
Investment Growth
Investment vs Return
Reverse CAGR Calculator - Growth Table
Reverse CAGR Calculator - Growth Table
Reverse CAGR Calculator: Meaning, Formula, SIP & Monthly Growth
Use this Reverse CAGR Calculator online to estimate how an investment can grow over time and to understand the relationship between present value, CAGR, and time period. Below is a compact guide that answers common queries like “reverse CAGR meaning”, “reverse CAGR formula”, “reverse CAGR for SIP”, “reverse CAGR in Excel”, and “how much should I invest to reach ₹1 crore”.
Meaning What is Reverse CAGR?
Reverse CAGR is used in goal-based planning to connect starting amount (present value), expected CAGR, and time. In simple terms: it shows what your investment could become (future value) if it compounds at a fixed annual rate.
People often search “reverse CAGR” when they want to plan a target like ₹10L or ₹1Cr and need clarity on growth assumptions.
Formula Reverse CAGR Formula
This calculator uses the standard compounding equation (annualized growth applied over years). It’s ideal for estimating a target value under a constant CAGR assumption.
- Present Value (PV): your starting investment
- CAGR: expected annual growth rate (%)
- Years: total holding period
How to How to Use This Calculator
- Enter your Initial Investment (PV).
- Enter expected CAGR (%).
- Enter Number of Years.
- Instantly see the Final Value, monthly rate, charts, and the month-wise growth table.
Tip: If you’re comparing funds or indices, use a realistic long-term CAGR range instead of best-case returns.
PV for Target Calculate Initial Investment for a Goal
Many users search: “How much do I need to invest today to reach ₹X in Y years at Z% CAGR?” That’s the reverse-planning use case: solve for Present Value using the same compounding logic.
Use this when you have a target amount and want to estimate the lump-sum investment needed today under a chosen CAGR assumption.
SIP Reverse CAGR for SIP (Monthly Investing)
SIP returns are driven by multiple cash flows (every month), so the math differs from a single lump-sum PV → FV calculation. Use this page to visualize growth assumptions; for true SIP performance, evaluate using XIRR.
If you invest monthly, XIRR is the correct metric. CAGR is best for lump-sum comparisons.
Monthly Reverse CAGR Monthly Growth Table
Users often ask: “How does my investment grow month by month?” This calculator converts annual CAGR into an equivalent monthly rate and builds a month-wise table so you can see the value, increase, and % growth for each month.
This makes compounding easier to understand and helps you compare different CAGR scenarios quickly.
Excel Reverse CAGR in Excel
Prefer spreadsheets? You can calculate the same output using Excel/Google Sheets. Use CAGR as a decimal (8% = 0.08).
For monthly compounding tables, compute a monthly rate first, then apply it over months.
PV vs FV Present Value vs Final Value Explained
Present Value is what you invest today. Final Value is what it may become after compounding. Reverse CAGR connects these two with a time horizon so your goal planning becomes measurable.
- Longer time generally increases the compounding effect
- Higher CAGR may imply higher volatility/risk
- Small CAGR changes can meaningfully change long-term outcomes
Check Reverse CAGR Return / CAGR Cross-Check
If you already know your starting amount and ending amount, you can back-calculate CAGR to compare investments and time periods.
For investments with multiple deposits/withdrawals, use XIRR instead of CAGR.
FAQ: Reverse CAGR Calculator (Smart, Practical Answers)
Got a doubt while using the calculator? These answers help you choose realistic inputs (CAGR, years, target value) and interpret the output correctly.
Is reverse CAGR the same as CAGR?
It uses the same CAGR concept, but the purpose is different. CAGR often summarizes past growth. Reverse CAGR is used for future goal planning—linking PV, CAGR, and years to estimate the future value.
How accurate is this reverse CAGR calculator?
The math is accurate for constant compounding. Real returns vary, so treat the result as an estimate under an assumed CAGR, not a guarantee.
What CAGR should I assume for long-term planning?
Use a conservative range based on asset type and your risk tolerance. The smartest approach is to run low / base / high scenarios and plan using the low-to-base outcome.
Why does a 1% CAGR difference matter so much?
Compounding magnifies small differences. Over 10–20 years, a 1% change can create a large gap in final value.
Can I use this for SIP or monthly investing?
Use it to understand growth assumptions, but SIP has many monthly cash flows. For SIP return measurement, XIRR is more accurate than CAGR.
Why does the calculator show a monthly rate and month-wise table?
It converts annual CAGR into an equivalent monthly rate so you can see compounding in smaller steps through the monthly growth table.
How do I calculate how much I need to invest today for a target?
Use PV = FV ÷ (1 + CAGR)Years. This estimates the lump-sum needed today to target a future amount under your chosen CAGR.
Does this include inflation (real return)?
This is nominal growth. For real purchasing power, compare CAGR with inflation or plan with a lower “real return” assumption to avoid underestimating your goal.
Is CAGR the same as average yearly return?
Not exactly. CAGR is an annualized compounded rate. Your year-by-year returns can be volatile, but CAGR summarizes the overall growth between PV and FV over the whole period.
Why is my expected value different from the calculator?
Common reasons: using SIP logic for a lump-sum formula, different compounding frequency, rounding years/months, or assuming a CAGR that’s too optimistic. Try multiple CAGR scenarios to see sensitivity.
How do I do reverse CAGR in Excel?
For future value: =PV*(1+CAGR)^Years. For present value needed: =FV/(1+CAGR)^Years. Use CAGR as a decimal (e.g., 0.12 for 12%).
What’s a smart way to plan for ₹1 crore?
Set the goal amount (FV), choose a conservative CAGR range, and test different time horizons. Plan around the conservative/base case, then increase contribution/starting amount if the low-case misses your target.