CAGR Calculator

Initial Investment

₹0

Final Value

₹0

Duration Of Increment

CAGR is

37.97%

All you need to know about the CAGR Calculator

What Is CAGR?

The compound annual growth rate (CAGR) is the rate of return (RoR) expected from an investment option if the returns generated during the tenure of the investment were constantly reinvested during the tenure of the investment. It indicates the compounded annualised average rate of return on your investments. CAGR is a useful tool for investors because it measures the average annual growth (or loss) of investments over time. Therefore, the compounded annual growth rate (CAGR) is one of the most precise methods for calculating and determining the average annual growth rate for any investment option whose value might rise or fall over time.

However, most investments don’t increase linearly at the same rate every year. Despite this, the CAGR calculator is extensively used as a ’go-to’ method to compare how different investments have performed over time, or against a benchmark.

Why Do You Need CAGR?

CAGR can assist an investor in determining how much to invest today in order to attain a given financial goal over time. While annual returns are frequently used to analyse mutual funds and equities, the compounding factor is sometimes disregarded. As a result, these indicators usually overestimate returns, leading to poorer investment decisions. By using a standard rate of compounding, CAGR can deliver more reliable findings. It can also be used to analyse the performance of an investment, compare stocks or mutual funds, and even track business performance.

What Is A CAGR Calculator?

The CAGR calculator is an online tool that calculates the compound annual growth rate of an investment over a given period of time using a preset mathematical formula.

It answers the critical question of whether the investment in question yields the returns you are expecting during a given time or not. Kuvera’s CAGR Calculator automates maths for you and provides fast results to help you make better financial decisions available online, but it is important to pick one that offers the most user-friendly approach for calculation. Kuvera provides this online tool for free in an organised and easy to use manner. Kuvera’s CAGR calculator computes the annual average return in an instant, saving your valuable time and resources.

In contrast with the concept of absolute return, calculating an investment's CAGR indicates growth based on an element of time which is overlooked in the concept of absolute return.

Kuvera’s CAGR calculator comes in handy while calculating returns of various investment options. For example, two companies A and B, the performance of each company’s stock over a period of time can be easily compared based on their CAGR.

How Does Kuvera’s CAGR Calculator Work?

Three input values are required to be entered into Kuvera’s CAGR calculator:

The present value of the investment (PV)
The final value of the investment (FV)
The timespan or number of years of investment (active years) (n)

The mathematical calculation of CAGR is derived using this formula:

CAGR =[(Final Value/Present Value) ^(1/n)] - 1

You will get the result as soon as the data is computed into Kuvera's CAGR calculator.

For Example: Let's assume company A has an initial investment of Rs 10000 (PV) in its business and the total investment has grown to Rs 25,000 (FV) after 3 years (N).

(25,000/10,000)^(⅓) -1 = 35.72%

The CAGR is 35.72%

How To Use Kuvera CAGR Calculator?

Kuvera’s CAGR calculator is a free online tool that can be used to assess your investment decisions based on CAGR. Within seconds, the Kuvera’s CAGR calculator can compute two types of investment returns based on the user's inputs, namely Absolute Returns and Compound Annual Growth Rate (CAGR).

The first step is to enter the initial value of the investment.
The second step is to enter the final value of the investment.
The third step is to enter the active years of investment.

Kuvera’s CAGR calculator will produce the results as soon as you fill in the values and show you the compounded annual growth rate.

If you've invested a lump sum in mutual funds for more than a year, you can use the Kuvera’s CAGR calculator. It can also be used to calculate the return on other investment funds within the same category in order to evaluate different CAGRs and select the investment with the highest expected return.

Benefits of Using Kuvera’s CAGR Calculator:

Kuvera's CAGR calculator can assist you in determining the value of your mutual fund investments. The average annual growth rate of a mutual fund over time can be compared to a benchmark. You can choose a mutual fund based on its past performance
Kuvera's CAGR calculator can assist an investor in determining how much to invest today in order to reach a particular financial objective over time. While annual returns are frequently used to evaluate mutual funds and equities, the compounding effect is sometimes disregarded. Consequently, these indicators frequently overestimate returns, which can result in suboptimal investment decisions. Therefore, CAGR can provide more accurate results by using a standard practice of compounding.
Kuvera's CAGR calculator can assist you to compare your performance with other similar instruments to determine if you are outperforming the market. For instance, if you previously purchased units of an equity fund and their value has increased, you may easily calculate your average annualised gains using CAGR.
Kuvera's CAGR Calculator is a simple and efficient tool for an easy CAGR analysis. Simply enter the initial and final investment values along with the duration of the investment, and you can arrive at the CAGR value without getting into confusing mathematical calculations.

Limitations Of CAGR:

CAGR is a significantly useful and widely accepted concept, yet it comes with its own set of limitations as mentioned below:

No matter how consistent a company's or investment's growth has been in the past, investors cannot assume that it will continue at the same rate in the future. The shorter the time period employed in the analysis, the less likely it is that the actual future CAGR would match the projected CAGR when using historical data.
CAGR calculations only take into account the beginning and ending values. It cannot be used to accurately assess risk. As an investor, you may not be able to understand the performance of an investment option just on a company's CAGR because short-term fluctuations are not considered.
CAGR is only appropriate for a lump sum investment. As in the case of SIP investment, the systematic investment at multiple intervals would not be reflected for computing CAGR, as only the initial amount and final amount are considered.
CAGR does not take into consideration the inherent risk of an investment.

To manage and track your investments, get started on Kuvera. Invest for your goals in commission-free Mutual Funds, online Fixed Deposits, Indian stocks, and more. Kuvera is your safe space to invest.

FAQs

Online investing in India simplified - Kuvera

Are you looking to invest in direct mutual funds or stocks?

Welcome to Kuvera — the first 100% free online investment and financial planning platform. Discover the best investment options without subscription fees, hidden charges, or commissions, and give more power to your investments.

At Kuvera, we make investing easy, and the experience awesome. Benefit from our AI-powered technology to super-charge your investments. Set your financial goals, invest in only direct plans, minimize your long term tax impact through tax harvesting, manage family accounts, consolidate your entire investment portfolio, and more.

How to Select and Invest in the Best Mutual Fund Plans in India?

Starting your investment journey with mutual funds can be challenging. At Kuvera, we make it easier with goal planning, selection of funds, tax optimisation, and more. Create your financial goal to know the required investment amount as a lump sum and/or SIP and check out our intelligent recommendations of funds. Or choose your preferred MFs and get started. Kuvera is an online investment platform that offers direct plans with zero commissions and charges zero subscription fees.

Are you searching for the best direct mutual funds to invest in?

The Kuvera app is one of the best mutual fund apps you can use to select investments for your portfolio. Simply follow the given steps:

Step 1: Download the Kuvera app on your smartphone, or sign up on our website with your email id and mobile number. Step 2: Get on board with our quick and simple KYC flow. Step 3: Go to 'Invest' and discover direct mutual funds based on your requirement.

There are several ways to find the best-performing mutual funds on Kuvera. Explore different categories of mutual funds based on your risk appetite, including equity, debt, and hybrid funds. You can also consider investing in global funds and NFOs through Kuvera.

You can also plan your specific financial objectives like owning a home, child’s education, a dream wedding, or building a retirement corpus through goal-based money investment. Enter the amount required for your goal, and the time you have. Viola! Kuvera will tell you how much you need to invest and the best mutual fund schemes that will help you accomplish the goal.

Keep Track of Top Stocks with Kuvera

To maximise your wealth, the key is to find stocks that have the potential to outperform the market. Before buying, you need to do thorough research on the stock's fundamentals. Kuvera makes it easy to find the best shares to invest in with all the necessary details in one place.

Search for any stock and track share prices on the Kuvera app. Keep an eye on stocks that are top gainers/losers for the day, or ones with 52-week highs or 52-week lows, along with total market capitalization.

Click on any stock you want to analyse on the Kuvera, the best investment app, and get all the details you’ll need.

The stock’s real-time price
Day’s high
Day’s low
52 week high
52 week low
1-year return
5-year return
Price-to-earnings (PE) ratio
Price-to-book (PB) ratio
Earnings per share (EPS)
Market cap
Trading volume
Dividend yield

You can also check the company’s detailed history and its financials, including the balance sheet, income statement, and cash flow. What’s more, you can also compare these details of stock with industry peers on the Kuvera app.

Import your stock portfolio on Kuvera and get a single view of all your investments. Track MFs, stocks, FD and insurance - all on one dashboard.

International Money Transfer with the Kuvera App

At Kuvera, we offer a faster and more affordable option for international money transfer through our partner Wise (formerly Transferwise). It is a smarter alternative to traditional international transfers and makes it easy to send money to your loved ones.

In contrast to some providers who sneak a markup into the exchange rate, Wise uses an exchange rate provided by Reuters to ensure fair and low-cost transfers. There are no hidden charges involved, and you can track the status of your transfers.

Transfer your money online using Wise through these few simple steps:

Step 1: Create a free account with Wise on its website or app. Step 2: Enter the transfer amount and your bank details. Step 3: Input account details from the Kuvera app. Step 4: Enter the rest of the required details and click ‘Confirm’. Step 5: Pay for your transfer using your preferred payment method.

In addition to the various benefits of transferring money through Wise, you can win an Amazon Pay Gift Card worth Rs. 1000 on your first international money transfer.

Invest in fixed deposits with the Kuvera App

Fixed deposits are one of the oldest and safest investment options offered by financial institutions. As an individual, you may want to diversify your portfolio by investing in such safe and fixed-income investments. That is why the Kuvera app lets you compare interest rates and invest in FDs.

Fixed Deposit facilities offered by Bajaj Finance Limited (“BFL”), Shriram Finance Limited ("Shriram") and Mahindra Finance Limited ("Mahindra") through commercial arrangements between Vueark Technology Services Private Limited (“VTSPL”), a 100% subsidiary of AASPL, and each such Fixed Deposit issuer.

To invest in FDs through the Kuvera app, follow the given steps:

Step 1: Go to the ‘Invest’ section and click on FD. Step 2: Find the best FDs for your investment based on your preferred tenure. Step 3: Click on the name of the investment to view the details, and then select 'Start FD'. Step 4: Enter the investment amount, tenure, and deposit option (cumulative/non-cumulative), and click on ‘Continue’. Step 5: Add details of your bank account to start investing.

You can compare FDs with similar tenure on the Kuvera app to find which financial institution is offering the best interest rates. Moreover, our app lets you calculate your returns from investments.

Why Choose Kuvera?

Are you looking to invest in direct mutual funds or stocks?

By investing in direct plans on Kuvera, you can earn up to 35% more in 20 years as you do not have to pay any commission ever.

For a longer answer, take a look at some of the benefits you will get by investing through our website/app.

100% free platform: A big reason why people consider Kuvera to be the best investment platform in India is that we impose no charges/fees. Kuvera’s online platform is completely free to use, with no feature locked behind a paywall. There are no fees, hidden commissions, or AUM linked charges
On your side: At Kuvera, we want you to invest at your own pace and comfort. We enable you to become your own wealth manager. And that’s why we created an investing experience that has no place for any #FOMO or pressure. You won’t find “hot tips”. Kuvera is your safe space to invest.
Switch to direct plans with Tradesmart: Regular plans for mutual funds can be cumbersome and expensive. But, what can you do if you already have one? We offer Tradesmart, which lets you switch to direct plans of the same plan. Now, you have no need to continue paying commissions.
Achieve your financial goals: Everyone has a dream, which might involve owning a car, purchasing a new home, sending kids abroad for education, or having ample funds after retirement. With Kuvera’s goal-based investment, you too, can make your dreams a reality.
Better account management: With Kuvera’s automated tracking facility, you can easily track your entire investment portfolio. You can also let your financial advisor guide your investment decisions by adding him/her as a manager to your Kuvera account.
Manage your family’s account: You can add multiple accounts to your login ID, which will allow you to look after your family members’ investments.

Kuvera is the one platform for all your investment needs. We have an experienced team of data-driven ex-money managers and technologists who understand your investment-related requirements.

Frequently Asked Questions

1. Can I start an SIP using the Kuvera app?

Yes, you can start a Systematic Investment Plan (SIP) using the Kuvera platform. Create your goal to get our recommendations, or find an MF of your choice. Select it and enter the amount for SIP and / or the lump sum amount you want to invest. If you do not have a folio, you can create a new one to start investing.

2. What is the use of following goal-based money investment?

It is common to spend money impulsively on things like a fancy gadget or an expensive vacation and end up not having enough funds for the important stuff. A goal-based investment prevents this as you are less likely to take money away from your goal of child’s education or retirement. When the money is tagged against a goal, we get more committed to ensure the financial goal is on track.

3. How do I create my financial goal on Kuvera?

To create your financial goal, follow these steps:

Step 1: Go to Create a Set a Goal Step 2: Enter an estimated cost of that goal. Step 3: Enter your age, investment period, planned loans, and upfront investment (if any). Step 4: Kuvera app will show the required monthly investment for this goal. Step 5: Add this goal to view recommended investments.

4. How does Kuvera’s Tax Harvesting technique work?

Tax Harvesting is a technique that involves benefitting from LTCG tax on equity funds. Long-term capital gains earned from equities and equity-related investments are taxable at a 10% rate on returns above Rs. 1,00,000 in a financial year. If you sell and buy back part of your investments every year, you can save on taxes. This utilises the ₹1 Lakh annual LTCG exemption by selling and buying back part of your investment such that you “realise” gains and not pay taxes on the exempt Rs 1 Lakh of LTCG. At Kuvera, we monitor your portfolio and recommend a transaction when applicable. We use sophisticated modelling to decide when is the right time to harvest taxes. Then we recommend the transactions you need to execute to harvest LTCG.

5. Why would I want to switch from a regular plan to a direct plan for mutual funds?

In regular plans, you pay commissions to the broker or the distributor, which can be as much as 1.5% of the value of your holding, every single year. This 1.5% leakage can make a huge difference, if you look at the compounded value over years. By investing in Direct Mutual funds, you save this commission every year. If you compare an investment of Rs 1 lakh in a Direct Plan and a Regular Plan, your investments will be worth 35% more in just 20 yrs when you invest in Direct Plans.

Direct MF plans are better than regular plans because they generate higher returns, have higher NAV, have no risk of mis-selling and give you full control of your investment.