What is a Reverse CAGR Calculator?
A Reverse CAGR Calculator can be used to calculate the final amount of an investment when the CAGR (Compound Annual Growth Rate) is known. The reverse CAGR calculator takes the initial amount, CAGR, and the total time of investment as inputs, and computes the final amount (expected at the end of the period).
What is CAGR or Compound Annual Growth Rate?
CAGR or the Compound Annual Growth Rate is the annual rate of return on an investment when the investment returns are reinvested every year.
For example, an investment of $1,000, growing at 10% per year, will be worth $1,100 after 1 year.
After 2 years, the same investment will be worth $1,210 (i.e. a 10% growth on $1,100)
After 3 years, the same investment will be worth $1,331 (i.e. a 10% growth on $1,210)
After 4 years, it will be worth $1,464.10
..and so on.
Visualizing a 10% compounded annual growth is not quite as intuitive (or correct) as $1000, $1100, $1200, $1300, and $1400…
Hence, to make your life simple, we have created a free Reverse CAGR calculator for you.
What is Reverse CAGR formula?
A reverse CAGR formula can be used to compute the final value of an investment.
Final Amount = Initial Amount * (1 + CAGR) ^ Years
How To Use The Reverse CAGR Calculator?
The Reverse CAGR Calculator is easy to use and has a very simple interface.
Fill in the details such as the initial amount, annual growth rate, years, and (optionally) months. For example, we will use $10000 as the initial amount, 10% as the annual growth rate, and 25 years as the time period. Press calculate when ready.
The result will be displayed just below, in a matter of less than a second. For the inputs we have provided, we get an answer of $108,347 as the final amount.
See also: CAGR Calculator
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