Calculate the Compound Annual Growth Rate of your investments. Understand the annualized growth percentage over a period.
Formula:
CAGR = (Ending Value / Beginning Value)^(1/Years) - 1
Expressed as percentage
CAGR (Compound Annual Growth Rate) is the annualized growth rate of an investment over a specified period. It assumes the investment grows at a constant rate each year.
CAGR helps you compare different investments fairly by smoothing out investment volatility. It shows what consistent annual growth rate would deliver the same returns.
CAGR assumes compound growth, while average return is just the simple average. CAGR is more accurate for comparing investments over time.