CAGR Calculator

Calculate compound annual growth rate

Calculate CAGR

Beginning Value

Ending Value

Number of Years

CAGR Result

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Total Growth---

Absolute Return---

Reverse CAGR - Find Future Value

Starting Amount

Expected CAGR (%)

Years

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Understanding CAGR

CAGR represents the smoothed annualized rate of return. Unlike simple average returns, CAGR accounts for the compounding effect, giving a more realistic picture of investment growth.

CAGR = (Ending Value / Beginning Value)^(1/Years) - 1

Frequently Asked Questions

What is CAGR?

CAGR (Compound Annual Growth Rate) is the mean annual growth rate of an investment over a specified period longer than one year. It smooths out the return rate as if growth were constant.

How is CAGR calculated?

CAGR = (Ending Value / Beginning Value)^(1/n) - 1, where n is the number of years.

Is CAGR the same as average return?

No. CAGR accounts for compounding while simple average does not. CAGR gives a more accurate picture of annualized growth.

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