What is a Reverse CAGR Calculator?
Reverse CAGR Calculator is a free online tool to calculate future value of an investment.
A Reverse CAGR Calculator can be used to calculate future value (i.e. 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 future value (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 future value (final value) of an investment.
Final Amount (or Future Value) = 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 future value (final amount).
How do you calculate CAGR backwards?
A reverse CAGR calculation can be done using a Reverse CAGR Calculator
The Reverse CAGR formula calculated the Future Value of an investment.
Future Value = Initial Value * (1 + CAGR) ^ Years
See also: CAGR Calculator
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