CAGR Calculator

The CAGR full form stands for "Compound Annual Growth Rate." It shows how much an investment has grown each year over a specific time period, assuming it grows at a steady rate. Unlike simple returns, CAGR considers the time factor, giving a clearer picture of how your investment has actually performed over time.

To learn more about it, read our detailed guide- What is CAGR Full Form in Mutual Fund & Formula.

A CAGR Calculator helps you find out how much your investment has grown each year. For example, if you invested Rs.10,000 and after 5 years it's worth Rs.20,000, the CAGR calculator will show you the annual growth rate.

You just need to enter the following details:

• Your starting amount.
• Your final amount.
• Your investment duration.

MySIPonline's CAGR Calculator will tell you how your investment has grown. This tool is great for comparing different investments while calculating CAGR returns and seeing which one is doing better in the fiercely competitive market.

The CAGR formula to calculate your Mutual Funds investments is:

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

It’s a simple calculation that shows the actual growth rate of any organization over time. Here is what the values mean:

FV = Face Value

PV = Present Value

N = Time period in years

Now, let's take an example of CAGR calculation:

Let’s say you invested Rs.15,000 in a mutual fund, and after 3 years, it grew to Rs.25,000. To find out the yearly growth rate, you use the CAGR formula:

CAGR = (Final Value / Initial Value)^(1 / Number of Years) – 1

For this example:

CAGR = (25,000 / 15,000)^(1/3) – 1 = 18.56%

So, your investment grew at an average rate of 18.56% per year over 3 years.

You can also calculate the total return on your investment:

(25,000 – 15,000) / 15,000 × 100 = 66.66%

This means your investment grew by 66.66% in total but CAGR returns give a more accurate picture of how much it grew each year.

The following are the benefits that MySIPonline's CAGR return calculator offers:

1. Simple to Use
   

   Just enter the starting and ending values, along with the investment period, to get the CAGR returns.

2. Helps with Decisions
   

   Shows you how much your investment has grown each year, helping you make smarter choices.

3. Compare with Benchmarks
   

   See how your investment’s growth compares to relevant benchmarks.

4. Track Mutual Funds
   

   Check how your mutual funds have performed over time.

5. Evaluate Stocks
   

   Compare the performance of stocks against others in the same industry.

6. Understand Portfolio Growth
   

   See how your investments have done over time and make better decisions for the future.