How the CAGR Calculator works
CAGR is the steady yearly growth rate that takes an investment from its starting value to its ending value. It smooths out the ups and downs in between.
Formula: CAGR = (Final ÷ Initial)1 ÷ years − 1.
Find the Compound Annual Growth Rate (CAGR) of any investment from its starting value, ending value and time period.
Results are estimates for learning and planning. Actual returns, rates and charges vary.
CAGR is the steady yearly growth rate that takes an investment from its starting value to its ending value. It smooths out the ups and downs in between.
Formula: CAGR = (Final ÷ Initial)1 ÷ years − 1.
No. The simple average of yearly returns ignores compounding and is usually higher than CAGR when returns are volatile.