Initial investment

Final investment

Duration(Years)

CAGR

Initial investment

0

Final investment

Compound Annual Growth Rate (CAGR) measures the average yearly growth of an asset over a given time. A CAGR Calculator helps investors easily calculate CAGR to get an estimate of the return on their investment. By using the CAGR Calculator, investors get an annual growth rate that can be compared against the benchmark returns.

Navi’s CAGR Calculator is a simple and easy-to-use tool that you could use to check the annual growth rate of your investment. All you need to do is just select the initial and ending value of the investment and the duration.

You can use the CAGR Calculator to get both the Absolute Returns and the Compound Annual Growth Rate quickly and accurately. While it’s possible to calculate your returns manually, to save time, you can use the Navi CAGR Calculator.

Here’s how you can calculate CAGR:

Use the slide bar to select the initial investment value

Choose the final value with the slide bar

Select investment duration to complete the process

Once done, you will be able to view your Absolute Returns or the CAGR value using the calculator.

The CAGR Formula is as follows:

CAGR = (FV / PV) 1 / n – 1

Where:

FV is the Future Value of the investment

PV is the Present Value of the investment

N is the number of years of the investment

For example, an investor invested ₹20,000 in Mutual Funds in the year 2015. The value of the investment in the year 2020 will be ₹35,000. By using the above-mentioned formula, we can calculate the CAGR of this investment this way:

CAGR= (35000/ 20000) ^ (1/5) – 1 = 11.84%

The above result can be interpreted as: This investment will give the investor a return of 11.84% per annum.

If the investor wants to calculate the Absolute Return on his investment, he can calculate it using the CAGR calculator. The calculation for it will be:

Absolute returns= (FV- PV) / PV * 100 = (35000-20000)/ 20000 * 100 = 75%

The above result can be interpreted as: This investment will give the investor an absolute return of 75% over its tenure.

Here are some of the advantages of using the Navi CAGR Calculator:

The Navi CAGR Calculator is simple, quick and accurate. Investors only need to input a few values to check their investment returns.

Investors can use the Navi CAGR Calculator to assess their returns in multiple scenarios.

The calculator is easy to use and comes with a user-friendly design

As such, there is no predefined percentage for a good CAGR as several factors affect it. However, one can say that the CAGR should be higher than the interest rate on a Savings bank account.

Absolute return is the increase or decrease of an investment over a given time, while CAGR is an imaginary number which gives the investor the rate at which his investment would have grown.

You can use CAGR to see the performance of different mutual funds. It will help you determine your earning potential. You can also use CAGR to compare the historical returns of stocks, mutual funds, bonds, etc.

IRR or Internal Rate of Return and CAGR are the same when an investor makes a lump sum investment. If the investor makes multiple investments and gets variable annual returns, IRR and CAGR will be different.

The Absolute Return does not give the true growth of an investment. So the investors can use the CAGR calculator to know the CAGR to get the annual growth rate of their investment for a given period.

CAGR ratio is a geometric progression ratio that can be used to compare the returns on different investments.

A 5-year CAGR shows the 5 year financial performance of a business. You can also use the 5 year CAGR to compare the performance of different companies.

No, you do not need to log in to use the Navi CAGR Calculator. Anyone can use our CAGR Calculator.

Disclaimer : Navi does not guarantee accuracy, completeness or correct sequence of any of the details provided therein and therefore no reliance should be placed by the user for any purpose whatsoever on the information contained / data generated herein or on its completeness / accuracy. The use of any information set out is entirely at the User’s own risk.

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