CAGR Calculator – Compound Annual Growth Rate Calculator

The CAGR (Compound Annual Growth Rate) calculator is a useful tool for investors to understand the average annual growth rate of an investment over a specific period. Unlike simple returns, CAGR smooths out the effects of volatility and gives a single growth rate that links the beginning value and the ending value.

What is a CAGR Calculator?

A CAGR calculator helps investors estimate the consistent annual rate at which an investment grows over time. It’s particularly useful for comparing the performance of different investment options or for tracking the growth of a portfolio.

This calculator does not account for interim deposits or withdrawals; it assumes a single initial investment grows at a steady rate.

How can a CAGR Calculator help you?

The CAGR calculator allows investors to:
-> Understand the average annual return of an investment.
-> Compare different investment options more effectively.
-> Set realistic expectations for portfolio growth over time.

How does the CAGR Calculator work?

CAGR is calculated using the formula:

CAGR = (Ending Value ÷ Beginning Value) ^ (1 ÷ Years) – 1

Where:
Beginning Value (BV) = initial investment
Ending Value (EV) = final investment value
Years (n) = investment duration in years

Example:
Suppose you invest 100,000 BDT and after 5 years the investment grows to 180,000 BDT.

Step 1: Divide Ending Value by Beginning Value:
180,000 ÷ 100,000 = 1.8

Step 2: Take the 5th root (since 5 years):
1.8 ^ (1 ÷ 5) = 1.125

Step 3: Subtract 1 to get the CAGR:
1.125 – 1 = 0.125 or 12.5%

So your investment grew at an average annual rate of 12.5% over 5 years.

How to use Shyamol’s CAGR Calculator

Enter your initial investment, final investment value, and investment duration in years. The calculator will show the compound annual growth rate immediately.

Advantages of using Shyamol’s CAGR Calculator

-> Helps plan investments based on realistic growth expectations
-> Simplifies complex calculations
-> Quickly assesses historical growth or projects future growth