Work out annualised return instantly with clear inputs, formula shown and shareable results.
The compound annual growth rate smooths a multi-year result into the constant yearly rate that would produce the same ending value. It is the only fair way to compare investments held for different lengths of time.
CAGR
CAGR = (Final/Initial)^(1/years) - 1
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
That ignores compounding and overstates the annual figure, badly so over long periods.
No. It says nothing about volatility — two investments with the same CAGR can have very different year-to-year paths.