CAGR Calculator

A CAGR calculator makes it easier for investors, as well as any businesses, to calculate long-term growth in a more structured, uniform way.

What Is a CAGR Calculator?

A CAGR calculator is a financial calculator that calculates the rate at which a particular investment or business has grown over a period of years on an average basis. It calculates how well a particular amount has compounded over a certain time period by reinvesting profits each year. A CAGR calculator can be used to calculate various business and financial metrics such as business growth, mutual funds, stocks, and more.

How to Calculate CAGR?

You can calculate the CAGR using the following formula:

CAGR = (FV / PV) 1 / n – 1

It determines the real-time CAGR for any organisation, where,

Future Value - FV
Present Value - PV
Time period in years - n

Example:

To understand the formula better, consider that you invested ₹4 lakh and that has grown to ₹7.25 lakh after 4 years. Using the formula, the CAGR of this mutual fund investment will be:
CAGR = (7.25 lakhs / 4.00 lakhs) ^ (1/4) - 1 = 15.01%

Applying the formula in detail can be time-consuming, so you may consider using an advanced mutual fund CAGR calculator to get the results quickly.

How to use BlinkX’s CAGR Calculator?

You can use BlinkX’s CAGR calculator online without any charges. Follow these simple steps.

Enter your initial investment amount.
Enter the expected value of the investment after a certain period.
Enter the number of years or months.

Within a few seconds, your CAGR will generate results.

Why Use a CAGR Calculator?

Our free CAGR calculator helps you:

Track your business growth year-over-year.
Compare investment alternatives effectively.
Benchmark your performance against market leaders.

Note: CAGR is a representative figure; it doesn't indicate investment risk.

Advantages of BlinkX’s CAGR Calculator Online

Using BlinkX’s CAGR return calculator online provides you with several benefits, such as:

Offers a detailed view of your ROI.
Determines the investment amount to enhance returns over a certain period.
Helps in making long-term capital influx plans.
Provide accurate results within seconds.
Helps evaluate the performance by comparing your business’ returns with benchmark options.

FAQs on CAGR Calculator

Can I use a CAGR calculator for other than financial growth metrics?

Yes. You can use CAGR on any measure (e.g., user base, revenue, site traffic) to calculate its average annual "compounded" growth rate over time.

Does compounding frequency impact CAGR?

No. CAGR is always a rate of annual compounding and so inherently presumes annual compounding; different compounding frequencies (daily, monthly) do not affect the calculated CAGR.

Can CAGR always be positive?

Yes. A negative CAGR means that the value of an investment has decreased over the specified period instead of increasing.

What is 5-year CAGR?

It is a method to measure how an investment or business has grown over a specific period. Suppose you want to invest in a company; you can calculate the 5-year CAGR of sales to know if the company will grow with time.

What is the CAGR return in mutual funds?

CAGR in mutual funds represents the average annual growth rate of an investment over a specific period, showing how the fund’s value has grown each year on a compounded basis.

What is CAGR return in stocks?

The CAGR for stock gives the average annual rate of increase in the stock's value or portfolio value over a period of time if the annual gains are reinvested.

What is the difference between XIRR and CAGR?

CAGR calculates the growth on the assumption of working with one investment at the beginning, whereas XIRR calculates, taking into account the multiple cash flows at different points of time.

How to calculate the CAGR of a company?

To calculate a company’s CAGR, divide the final value by the initial value, raise it to the power of 1 divided by the number of years, and subtract 1. This shows average yearly growth.

What is the difference between absolute return and CAGR in a mutual fund?

Absolute return calculates total return over an interval without consideration of time, whereas CAGR calculates this return on an annualised compounded basis.

What is a good CAGR for an industry?

The industry's CAGR changes based on the maturity, size, and industry conditions. The higher the CAGR, the greater the industry's growth. It, however, has to be considered in relation to the industry's standard.

How to calculate CAGR when one number is negative?

CAGR can also be calculated when the initial or terminal value is negative, although with some caution, since the assumptions attributed to CAGR may not hold under these circumstances.

How to calculate CAGR online?

Online CAGR calculators in India allow input of initial value, final value, and time period to quickly compute annualised growth, saving manual calculation steps.

What is the difference between CAGR and XIRR?

CAGR shows the average yearly growth by presuming one investment only; on the other hand, XIRR includes several investments or withdrawals occurring at different times.