Reverse CAGR Calculator
Totals
Reverse CAGR Calculator
What Is the Reverse CAGR Calculator?
A Reverse CAGR calculator helps investors estimate the future value of their investments based on an assumed annual growth rate and a chosen time period. Instead of analysing past returns, this calculator focuses on forward-looking projections, showing how current capital could grow if it compounds at a fixed rate.
This makes it easier to visualise long-term wealth creation and set realistic financial goals based on return expectations and investment duration.
What Is the Reverse CAGR Calculator Formula?
The future value of an investment is calculated using the following formula:
This formula highlights the impact of compounding, where returns generated each year are reinvested and themselves start earning returns over time.
Example
If you invest ₹1,00,000 today with an expected CAGR of 15% for 10 years:
₹1,00,000 × (1.15)¹⁰ = ₹4,04,555
Over a 10-year period, the initial investment grows to more than ₹4 lakh due to compounding.
How to Use the Reverse CAGR Calculator?
The calculator is designed to be simple and intuitive. The mathematical logic is already built in. You only need to enter:
- Initial Investment Amount
- Expected Annual Growth Rate
- Investment Time Period
Based on these inputs, the calculator instantly displays the projected future value, total wealth created, and absolute return percentage.
