There are various methods to measure rate of return on a particular investment or product. CAGR or Compounded Annual Growth Rate is one of the most popular methods used. The CAGR Calculator is quite popular among those who are eager to know rate of return needed to achieve the target. It is also popularly known as Growth Rate Calculator. Rate of Return Calculator is used by a lot of personal finance portals. InvestmentYogi provides a very simple calculator for knowing the rate of return needed to reach a target amount.
Why should you use this calculator?
If you are planning to invest your savings or have already started saving, you would be wondering how much annual rate of return is needed in order to reach your goal.
How to use this calculator?
The entries to make are:
Amount Invested (Rs) – Enter the invested or investible amount you have. This is also called the principal amount.
Amount Received at Maturity(Rs) –Enter the amount you would like to receive at maturity or the maturity amount promised by the financial institution for the investment made.
Duration in Years –It is the tenure you would like to give for your investment to grow. In other words, enter the number of years you want to stay invested.
Once you enter these values and click on submit, the result will be stating the CAGR or the annual rate of return required.
When should you use this Calculator?
This calculator is to be used by those who are looking to invest their hard earned savings and are confused on the rate of return needed for their investments to grow. They can choose their investment product depending on this rate.
Can it be used in any other situation?
This calculator is to be specifically used to know the CAGR or annual compounded annual rate of return needed.
Frequently asked questions about Interest Rate
Some frequently asked questions related to Rate of Return have been answered in the following articles:
Measuring Investment Returns – It describes the various methods to measure investment returns, such as simple return, compounded return, CAGR. You can use the described formulae to calculate the returns.
Declining Interest Rate Investment Options – The article describes the declining interest rate scenario and different options available for investment. Pros and cons of each investment are also given.