CAGR Calculator (Compound Annual Growth Rate)

Accurately Measure Compounded Growth Using Razorpay CAGR Calculator

Updated on: Thursday, August 1, 2024

Enter Total Investment

Total Maturity Value

Duration of Investment

years

Use the Razorpay CAGR Calculator to chart the growth of your investment or business. By measuring the compounded growth rate of an investment, this tool will enable you to assess and compare investments, set goals and make informed financial choices.

Use the Razorpay CAGR Calculator to chart the growth of your investment or business. By measuring the compounded growth rate of an investment, this tool will enable you to assess and compare investments, set goals and make informed financial choices.

Sign up now to experience the future of payments and offer your customers the best checkout experience.

Accept payments instantly through SMS, WhatsApp and social media

Know More
Payment Buttons

Accept payments on your website in less than 5 minutes

Know More
Razorpay POS

Collect payments swiftly in your store with Razorpay POS and it’s interesting offers.

Know More
Vendor Payments

Add, track and clear invoices in just a few clicks.

Know More

What is CAGR?

CAGR, or Compound Annual Growth Rate, is a measure used to understand the average yearly growth rate of an investment or business over a specific period. It takes into account the compounding effect, which means that the growth rate is calculated based on the initial investment and its subsequent earnings.

How to calculate CAGR?

Simplified steps to calculate the Compound Annual Growth Rate (CAGR):

• Determine the starting value (Initial value) of your investment or asset.

• Determine the ending value (Final value) of your investment or asset.

• Decide on the duration of the investment or asset growth, usually measured in years.

• Divide the Final value by the Initial value.

• Raise the result to the power of 1 divided by the number of years.

• Subtract 1 from the obtained value, then multiply by 100 to get the percentage.

CAGR Formula

The CAGR formula is as follows:

CAGR = (Ending Value / Beginning Value)^(1 / Number of Years) - 1

In this formula:

• "Ending Value" represents the final value of the investment or asset at the end of the specified period.

• "Beginning Value" represents the initial value of the investment or asset at the beginning of the specified period.

• "Number of Years" represents the total number of years over which the investment or asset has grown.

Example of CAGR

Suppose a company's revenue was 1 million rupees in the year 2020 and it grew to 1.5 million rupees in the year 2023.

• To calculate the CAGR for the company's revenue growth, we can use the CAGR formula:

• In this case, the beginning value is 1 million rupees, the ending value is 1.5 million rupees, and the number of years is 3.

• CAGR = (1.5 million / 1 million)^(1 / 3) - 1 CAGR = 1.5^(1 / 3) - 1

• Using a calculator, we can find that 1.5 raised to the power of 1/3 is approximately 1.1447. CAGR = 1.1447 - 1

Therefore, the CAGR for the company's revenue growth over the three-year period is approximately 14.47%.

Benefits of CAGR calculator online

There are several benefits to using an online CAGR calculator:

• Accuracy: Reduces the risk of manual errors.

• Convenience: Is convenient and saves time.

• Speed: Provides instant results.

• Simplicity: Is simple and user-friendly.

• Flexibility: Offers additional features and options, such as the ability to calculate CAGR for multiple investments.