CAGR is an acronym for Compounded Annual Growth Rate commonly used in determining how well a business is performing in the fiercely competitive market. It represents the growth of an organisation, and you can easily make out the growth rate, or the lack of it, using a CAGR calculator.
Such a calculator is easily available online, but user-friendliness is important while calculating CAGR returns. Groww’s online CAGR calculator brings you an organized and accurate approach to calculate your business’ CAGR.
If you own a business, the CAGR can indicate a lot of factors that are otherwise overlooked. Unlike the concept of ‘absolute returns’, growth based on CAGR takes into account the element of time. It is thus a better indicator of growth over a period.
Note that the CAGR is an indicative figure and not a real one. In its most basic sense, it indicates the exact rate of an investment’s growth considering that it grows at the same rate and the returns are reinvested. Taking note of CAGR is also a huge bonus when you are considering differential investment options.
A CAGR calculator helps you determine the true returns on investment yearly. In this sense, using our CAGR calculator online saves you time and other resources as it is completely free.
Thus, the CAGR calculator can tell you if:
Note that no CAGR calculator in India will give you any data on investment risk.
The CAGR formula to calculate the investments is represented by:
CAGR = (FV / PV) 1 / n – 1
It is a mathematical calculation that determines the real-time CAGR for any organization. The values stand for the following:
|N||Time period in years|
An example of CAGR calculation
If you have an initial investment of Rs. 1 Lakh in a business, it constitutes the PV. If the total investment has swollen to Rs 10 Lakh (FV) after 5 years (N), the CAGR is:
(10,00,000/1,00,000)1 / 5 – 1 or 0.589
Thus, the CAGR percentage is CAGR x 100 or 58.9%.
You can use Groww’s CAGR calculator online without any charges. Follow these simple steps.
The CAGR calculator will generate the results within seconds as soon as you input the values.
Our services provide you with several significant benefits.
You can see a wide range of other calculators below. Feel free to use them. Our CAGR calculator is designed for safety, efficiency, and accuracy. It helps you plan your future finances efficiently.
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