Input Parameters
Required Annual Growth Rate
The annual growth rate needed to reach your target amount.
Growth Visualization
The Reverse CAGR Calculator is a useful tool that helps you find the starting value of an investment. If you already know the final value, the compound annual growth rate (CAGR), and the number of years, this calculator tells you how much you started with.
What is Reverse CAGR?
Normally, CAGR is used to calculate how much your investment grew over time. But with reverse CAGR, we do the opposite. We work backward to find out the original value based on how much it grew annually over a period.
Formula to Calculate Reverse CAGR
Starting Value = Final Value / (1 + CAGR)n
Where:
- Final Value = Value at the end
- CAGR = Annual growth rate (in decimal form)
- n = Number of years
Example
Let’s say your final investment value is ₹2,00,000 after 5 years, and the CAGR was 12%.
Starting Value = 200000 / (1 + 0.12)5
Starting Value = 200000 / (1.7623) = ₹1,13,484.54
So, your investment started with around ₹1.13 lakh.
Why Use a Reverse CAGR Calculator?
1. Saves time and avoids manual errors.
2. Helps in financial planning and analysis.
3. Useful for back-calculating investments or past values.
4. Helps you understand how much to invest to reach a target in future.
How to Use the Calculator?
1. Enter your final amount.
2. Provide the CAGR rate.
3. Enter the number of years.
4. The calculator will instantly show your starting investment.
Who Should Use This Tool?
This calculator is perfect for investors, students, financial advisors, and anyone who wants to analyze past performance or plan future investments.
Conclusion
The Reverse CAGR Calculator is a smart and simple way to understand the beginning value of any investment. It removes the guesswork and gives quick results. Whether you’re planning your finances or checking your investment history, this tool is very helpful.