CAGR Calculator (Compound Annual Growth Rate)
Measure Growth Effectively with EnKash Capital's CAGR Calculator.
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Investment Planning: Plan your investment strategies more effectively by assessing potential returns over different time horizons.
Performance Evaluation: Compare your business's performance against industry benchmarks and make informed decisions.
Long-term Financial Planning: Develop robust long-term financial plans by leveraging our reliable CAGR calculations.
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Enter your initial investment amount.
Input the expected value of your investment after a specific period.
Specify the duration of your investment in years or months.
Receive accurate CAGR results instantly, empowering you to make informed financial decisions.
CAGR, or Compound Annual Growth Rate, provides a standardized measure of an investment's annual growth rate over a specific period. It considers compounding effects, offering a more holistic view of investment performance.
Example Calculation of CAGR:
| Year | Revenue (Rs) | Annual Growth Rate (%) |
|---|---|---|
| 2010 | 1000000 | |
| 2011 | 1200000 | 20 |
| 2012 | 1100000 | -8.33 |
| 2013 | 1500000 | 36.36 |
| 2014 | 1700000 | 13.33 |
| 2015 | 2200000 | 29.41 |
CAGR stands for Compound Annual Growth Rate. It represents the investments' annual growth rate over a specific period.
How to calculate the CAGR of a Company?
- Divide the investment's value at the end of a period by the one at the start.
- Divide the result by 'n' (the number of years) to get an exponent of one.
- Subtract one from the result that follows.
How to calculate CAGR in Excel?
You can calculate CAGR in Excel using the XIRR function. Here's an example:
- Enter the dates and corresponding investment values.
- Use the XIRR function, selecting the investment values and dates.
- Excel will provide the CAGR as the result.
How to calculate CAGR in SIP?
To calculate CAGR in Systematic Investment Plans (SIP), consider the following:
- Record the SIP investment amounts and corresponding dates.
- Use the XIRR function in Excel, inputting the investment amounts and dates.
- The resulting CAGR reflects the investment's growth rate over the SIP period.
What is a good CAGR percentage?
When it comes to investments in equity, there is no set percentage for a promising CAGR. It is a result of several factors. For most investments, whether equity or fixed income, the CAGR should, in theory, be higher than the interest rate on a savings account.
