Discover your future with our CAGR calculator. It helps you understand your investments, visualize their performance, and make informed decisions. It's not just about the numbers; it's about enhancing your financial journey.
Figure our how much your investment has grown each year on average over a certain period using our CAGR calculator.
The Compound Annual Growth Rate (CAGR) for this investment is 37.97%. Your initial investment of $100,000 has grown to $500,000 over a period of 5 years. This represents a total gain of $139,667, which is a 139.67% total return on your investment.
Are you curious about your average yearly return on investments? Meet your new best friend: the Compound Annual Growth Rate (CAGR)! This essential tool helps investors track the average growth (or decline) of their investments over time.
You might be wondering, "Don't we already have Absolute returns for that?" The answer is no — while Absolute returns show the total earnings from your investment, they don't provide the yearly average return. For example, if you invested $20,000 in a mutual fund in 2015 and it grew to $35,000 by 2020, it may seem like a 75% return. However, the yearly breakdown reveals a different story.
This is where CAGR comes in, giving you a clear picture of your investment's performance year after year.
Calculating your CAGR is straightforward with this formula:
CAGR = (Ending balance / Beginning balance)^(1/n) - 1
Here, the ending balance is your investment's value at the end of the period, the beginning balance is the initial investment amount, and n represents the investment duration in years.
For instance, using this formula, the CAGR for the mutual fund mentioned above would be 37.97%. This means your investment has provided an average yearly return of 37.97%.
With the EasyFinanceCalculator CAGR Calculator, determining your CAGR or Absolute returns is as easy as a click. Simply enter your total investment amount, final maturity value, and investment duration, then hit 'Calculate' to see your Absolute return or CAGR return. You'll also receive a visual chart of your investment growth over time and a list of mutual funds that could offer similar growth potential.
Using an online CAGR calculator offers many benefits for savvy investors. It enables you to evaluate the growth of your investment or business over time, helping you make informed decisions. Additionally, it allows for more accurate comparisons between multiple financial products, providing deeper insights for your investment strategy.
Don't wait any longer! Start using the online CAGR calculator today and take control of your financial future with smarter investment decisions.