What does CAGR stand for and its meaning?
CAGR stands for Compounded Annual Growth Rate. The formal definition of CAGR says that CAGR is the yearly rate of return that is required for an investment to grow from its initial balance to its final balance within the particular period.
However, CAGR is mainly used to smooth the rate of return over the whole investment period and therefore is very useful in comparing different investments.
Calculate the CAGR return for your investment in Nuuu CAGR Calculator.
How CAGR is calculated?
The formula to calculate
CAGR= (FV/PV) 1/n-1
The values stands are as follows
FV- Future Value
PV- Present Value
N- Time period in years
How to use CAGR Calculator?
- Enter the investment amount
- Enter the expected value of the investment after a certain period of time
- Enter the duration for which you wish to use the CAGR calculator
And the Nuuu CAGR Calculator will generate results in fraction of seconds
Advantages of CAGR Calculator
CAGR is one of the most accurate ways to calculate the return on an investment that rises and falls in value during the investment period.
CAGR allows you to compare investments with different time horizons.
CAGR makes it possible to compare profits from a particular investment with risk-free instruments. It also allows you to assess whether the premium for the risk taken is high enough.
Is the CAGR calculator free to use?
Yes the calculator is free to use
Does CAGR reflect investment risk?
The CAGR does not reflect investment risk
What is CAGR return?
CAGR (Compound Annual Growth Rate) measures your investments' average annual growth over a given period.