Work out the compound annual growth rate an investment achieved over its holding period.
CAGR is the constant annual rate that would take the beginning value to the ending value over the period. It smooths out the year-to-year volatility that makes raw growth rates hard to compare. Averaging annual growth rates arithmetically overstates performance; CAGR is the geometric rate that actually reconciles the start and end values of a investment.
Compound Annual Growth Investment
CAGR = (ending ÷ beginning)^(1 ÷ periods) − 1
CAGR = (ending ÷ beginning)^(1 ÷ periods) − 1 CAGR is the constant annual rate that would take the beginning value to the ending value over the period. It smooths out the year-to-year volatility that makes raw growth rates hard to compare.
Averaging annual growth rates arithmetically overstates performance; CAGR is the geometric rate that actually reconciles the start and end values of a investment.
This calculator takes 3 inputs: Amount invested, Value today, Number of periods. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.