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CAGR (Compound Annual Growth Rate) Calculator

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Indian Rupee
Indian Rupee

What Is a CAGR Calculator?

CAGR (Compounded Annual Growth Rate) is a useful metric for evaluating the annual growth rate of an investment over a specified period. It smooths out the returns as if they grew at a steady rate each year, making it easier to compare different investments.

How Can a CAGR Calculator Help You?

A CAGR calculator can provide insights into your business`'s performance over time. It helps you understand:

  • Growth Trends: Whether your business is growing steadily or facing challenges.
  • Investment Comparison: Comparing the performance of different investments to make informed decisions.
  • Planning: Planning future investments based on historical growth rates.

How to Calculate CAGR?

The formula for CAGR is:

CAGR = (FV / PV)^(1 / n) - 1

Where:

  • FV = Future Value
  • PV = Present Value
  • n = Number of years

Example Calculation

If you invested ₹1 Lakh and it grew to ₹10 Lakh in 5 years, the CAGR would be:

CAGR = (10,00,000 / 1,00,000)^(1 / 5) - 1 = 0.589

So, the CAGR is approximately 58.9%.

FAQs

Is the CAGR calculator free for use?

Yes, Our’s online CAGR calculator is free.

Do I need to log in?

No, you can use the calculator without logging in.

Does it provide data safety measures?

Yes, Our ensures data security using advanced technologies.

What is CAGR return?

It is the average return earned on investments annually.

Does CAGR reflect investment risks?

No, CAGR does not account for investment risks.

Is calculating CAGR better than IRR?

CAGR is a better performance indicator for overall financial health.

**Disclaimer:** This financial calculator is provided for illustrative purposes only. The calculations are based on assumptions and estimates, and actual results may vary. The calculator does not constitute financial advice and should not be solely relied upon for making financial decisions. Users are advised to consult with a financial advisor for personalized advice.

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