Reverse Compound Annual Growth Rate is a calculation to determine the future value of your investment. In this calculation, the Compound Annual Growth Rate (CAGR), which is the mean annual growth rate of an investment over a specified period of time, is known.
FV = SA * (CAGR / 100 + 1) n
- FV – Final Amount/Future Amount
- SV – Starting Amount/Value
- CAGR – Compound Annual Growth Rate
- n – number of years the money is invested for
Reverse Compound Annual Growth Rate (CAGR) Example
Let’s calculate a Reverse CAGR. In our example, we know that our CAGR over 4 years is 9.25%. We use the following formula to calculate the final value.
=B6(((B8100)/100)+1)^B10 FV - Unknown SV - $15,500 CAGR - 9.25% n - 4 years