CAGR Calculator / Compounding Annual Growth Rate Calculator

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Our Compounding Annual Growth Rate Calculator is mainly known as All-In-One CAGR calculator. It is a google and excel spreadsheet based tool with wide built-in range of features. This calculator can be use to calculate Lump Sum CAGR Calculator, Interest Rate Calculator, Investment Calculator and more. It can be use as XIRR Calculator, Stock Market Stimulator Calculator, Mutual Fund Stimulator Calculator, IRR Calculator, Lump Sum Compounding Annual Growth Rate Calculator and more.

Note: (1) We have provided 3 different templates compatible with google spreadsheet. Keeping this in mind, many of the excel based functions do not work with google spreadsheets. (2) When you see “Protected View” message, you need to click on “Enable Editing” in excel spreadsheet.


What is CAGR?

CAGR means annual growth rate of an investment over a long period of time. Compound Annual Growth Rate is the short form of CAGR. It determines returns for an individual asset or investments that can easily increase or decrease value in long run. CAGR helps to compare growth rate of similar type of product or business. It indicate performance (profits, sales, income, etc.) of company over period of time.

Compound annual growth rate (CAGR) is not an accounting term. It provides details of compounding growth of Income, goods, etc. for business. Average growth rate can be calculated on weekly, monthly or quarterly basis.

CAGR Formula

Investors depend on absolute returns and ignores value of money, CAGR takes into consideration the time period for which investor have stayed invested. It provides approximate rate of growth if there is no market volatility. One of the best way to analyse performance of assets or return on investment over time. The CAGR is calculated based on below formula.

CAGR Formula = [(FV/PV) ^ (1/Years)]-1

Here Symbol ^ refers to “power of”. FV refers to future value / return on investment amount. PV refers to present value / initial investment amount.

You can determine CAGR with 3 basic values. Beginning value of investment, Ending value of investment and Tenure of investment.


CAGR Example

We will calculate CAGR for multiple years. Assume that you have purchased a stock of amount 5,000. Your investment has grown to 20,000 in next 10 years. Return on Investment is 300%. You can use Return on Investment Calculator to evaluate it. Let us calculate compounding annual growth rate for your investment. You can use CAGR calculator to evaluate the result. CAGR on investment is 14.87% based on above formula.

What is Negative CAGR?

Negative CAGR means return on investment amount is lesser and initial investment amount is higher. Compound annual growth rate (CAGR) calculates average rate of return on investment from starting period of investment to maturity. Negative CAGR is also called as Bad CAGR.

Negative CAGR Example

Assume that you have invested 50,000 in your business. Consider that revenue of your business has dropped to 15,000 in next 5 years. It is important for you to understand the negative CAGR to make a strong decision on your business. You can use CAGR calculator to evaluate it. CAGR on your investment is -11.34% based on the above formula.

What is Reverse CAGR?

Reverse CAGR means calculating return of investment based on CAGR percentage. In simple words, it calculate Future / Maturity amount of an investment based on CAGR which is already known. You can use our Lump Sum SIP Calculator to examine example and evaluate Reverse CAGR.

Disadvantages / Cons / Limitations of CAGR

There are some disadvantages and cons of CAGR which should be consider. Some of the restrictions or limitations of CAGR are as follows:


1) CAGR is useful only for Lump Sum Investment. CAGR calculation is inaccurate for SIP investment where investor invests at different intervals.  

2) CAGR is analyze considering only initial and maturity value of an investment. It assumes constant rate of returns ignoring interim volatility.

3) Risk factor is not consider in CAGR. Equity Investment are subject to market risk where change in return is needed to be considered to analyse return on investment.

How to Use Lump Sum CAGR Calculator?

It is straight forward to use Lump Sum CAGR Calculator and Annual Interest Rate Calculator. You just need to fill some basic details of investment for CAGR calculation. You can even use as Mutual Fund Stimulator Calculator, Interest Rate Calculator, Stock Market Stimulator Calculator and more. Tools presented here is highly customizable according to most of your needs. One can view updated investment summary, chart and table after entering basic details.

All the features available in excel spreadsheet and google sheet are explain in the video. You can download the tool from the given link and play with it. This tool is 100% free for internal use, personal use, customize and modify it. You can customize the spreadsheet as it is not lock with password. These tool provided on our website cannot be use to sell with customized features, sell, re-sell or host as free. Get approval in written for such list of activities. Hope you will enjoy it.

Who can Use Compounding Annual Growth Rate Calculator?

This excel sheet and google spreadsheet based tool are highly compatible to handle multiple tasks. Your Compounding Annual Growth Rate Calculator is available in various themes with interactive chart and investment table and summary. This tool is called as All-In-One CAGR calculator. As name suggest, it is capable to handle different types of investment calculator. Examples are listed below.

  • CAGR Calculator
  • Lump Sum Compounding Annual Growth Rate Calculator
  • Lump Sum CAGR Calculator
  • IRR Calculator
  • XIRR Calculator
  • Investment Calculator
  • Interest Rate Calculator
  • Mutual Fund Stimulator Calculator
  • Stock Market Stimulator Calculator
  • And Many More Investment Types of Calculator.

Conclusion

You will definitely see the advantages of All-In-One CAGR Calculator in your business. You can download excel spreadsheet or google spreadsheet and get full control to customize it according to your requirement. Hope you will like it.

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