Reverse CAGR Calculator

What is a Reverse CAGR Calculator?

Ever wonder how much an investment will be worth after a specified time period if it compounds at a given rate? That is exactly what a Reverse CAGR Calculator helps you figure out. If you know how much money you have invested, the expected return rate, and investment time period in years; this calculator lets you find out the maturity amount and total returns .

How Can the Reverse CAGR Calculator Help You?

A Reverse CAGR Calculator is easy to use; especially if you are trying to get a better understanding regarding maturity value of your investments. Here is how it can help,

1. Find Out Your Maturity Amount: If you know how much money you have invested, expected return rate and time period, then the calculator tells you maturity amount and total returns.

2. Review Your Investment Performance: If you want to double-check how your portfolio performed over time, then this calculator helps you easily compare the theoretical returns promised against actual returns realized; thus helping you analyse returns with more clarity.

3. Make More Informed Financial Decisions: Knowing your financial goals is essential before investing as you should carefully select assets that are capable of delivering the required returns. The calculator helps you understand whether your current investment strategy aligns with your financial goals or not.

4. Save Time: Instead of doing calculations manually, a Reverse CAGR Calculator does the work for you in seconds and saves a lot of your time. 

How Does a Reverse CAGR Calculator Work?

A Reverse CAGR Calculator helps you by calculating the maturity value and total returns at the end of the investment period. It uses total investment amount, expected return rate and time period as input and calculates the final maturity amount along with returns earned instantly.

By adjusting the inputs, you can get a better understanding about the investment amount required or return rate or the time required to achieve your financial goals.

Formula to Calculate Reverse CAGR Calculation

The inputs used by the Reverse CAGR calculator are:

• Total Investment
• Expected Return Rate
• Time Period

The calculator uses the above inputs to calculate

• Maturity Value = Total Investment * ( 1 + Expected Return Rate) ^ (Time Period)
• Returns = Maturity Value – Total Investment

Example of Reverse CAGR Calculation

Let us say that you want to invest ₹3,00,000 over 10 years, and you expect an average annual return of 12% CAGR. So, the inputs are:

• Total Investment = ₹3,00,000
• Expected Return Rate = 12% per annum
• Time Period = 10 years

The outputs are calculated in the following manner

• Maturity Value = ₹3,00,000 * ( 1 + 12%) ^ 10 = ₹9,31,754
• Returns = ₹9,31,754 – ₹3,00,000 = ₹6,31,754

How to Use the Pocketful Reverse CAGR Calculator?

You can use the Pocketful’s Reverse CAGR calculator as mentioned below:

Step 1: Enter Your Total Investment Amount

This is the amount you want to invest for a certain number of years.

Step 2: Set the Expected Return Rate 

Use the slider or input box to enter the average annual return you expect from your investment.

Step 3: Choose the Time Period

Decide how long you plan to stay invested. Use the slider to set the number of years.

Step 4: View the Results

Once you enter the above details, the calculator will instantly show you the Total Investment, Returns, and the Maturity Value.