Total Amount Invested: 10,000
Total Gains: 10,000
Absolute Return: 100.00%
Total Amount Invested: 10,000
Total Gains: 10,000
CAGR Return: 14.87%
CAGR, or the compound annual growth rate, is an indicator of how well an investment or a business is performing in a dynamic market. It is an indicator of business or organisational growth over a period of time. CAGR is calculated using a CAGR calculator.
A formula is used to calculate CAGR. However, CAGR calculators are available online quickly and for free. This online calculator is an organised and accurate approach for calculating any business or investment's CAGR.
A business or organisation needs a CAGR calculator, as this calculation accounts for the time involved in the return generated from an investment. Thus, this is a more relatable calculation and a better indicator of growth than absolute returns.
The final figure arrived at by using the CAGR calculator indicates the exact rate of investment growth in the specific period at the same rate when the returns are reinvested continuously (compounded) at the end of each year within that timeframe.
CAGR is a helpful tool for organisations or businesses as it precisely measures investment growth as well as decline over the period.
The figures arrived at by using the CAGR calculator are used to:
For instance, to compare the growth of your mutual fund investment over the period, you can use the CGR calculator to determine the exact rate of return on your investment and then compare it to the benchmark return to see if you have made a sound decision or not.
The CAGR Calculator is an easy-to-use and straightforward tool that anyone can use for the following advantages:
This concept is specifically beneficial for analysing investment performance and comparing stocks, mutual funds, or business performance over a period of time. It uses a standard rate of compounding for calculating the return, avoiding overestimation.
The higher the CAGR, the greater the growth rate of the investment over the period, which is a positive sign for investors.
In addition to cagr investment, there is also sip investment worthy of attention, and you can try to use sip calculator to calculate the return on investment.