Compound Annual Growth Rate or CAGR shows an average yearly growth rate of an investment , assuming it is growing steadily . It is calculated using starting value , ending value and time period . It is widely used in the finance field by investors to calculate the long-term performance of an investment . It is commonly used in business to evaluate profit , revenue , market growth and so on .
The CAGR calculator is a free online tool to calculate the CAGR value . First enter the initial investment , final value with the tenure of the investment . Then the CAGR result will be displayed within seconds . It is easier to calculate using the CAGR calculator than calculating it manually , moreover it shows accurate results . Check our other financial calculators that are given at the bottom of the page . We also provide many other financial calculators like Systematic Investment Plan (SIP) , Systematic Withdrawal Plan Calculator (SWP) , Equity Linked Savings Scheme (ELSS) , Mutual Fund Return Calculator (MF) , Fixed Deposit (FD) , Recurring Deposit (RD) and etc .
Assume you are mentioning initial investment as Rs. 5,000 with final cost as Rs. 25,000 and duration as 10 years . Then automatically the CAGR results will be displayed as 17.46 % .
Let's classify below easily .
Initial investment (Rs.) = 5000
Final cost (Rs.) = 25000
Duration (yrs) = 10
Finally it displays ,
CAGR (%) = 17.46
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