CAGR Calculator
CAGR Calculator
Calculate CAGR Read More
Formula & Methodology
Generic formula
Example
Example calculation
Explanation
Explanation
Assumptions
Assumptions
FAQ
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CAGR measures a smoothed annual rate
CAGR equals ending value divided by beginning value, raised to one divided by years, minus one. It answers what constant annual rate would connect the two values. It does not show the actual path, volatility, contributions or drawdowns between those dates.
When CAGR is unsuitable
If money was added or withdrawn during the period, CAGR can misrepresent investor experience. Use XIRR for dated cash flows. A negative or zero starting value also requires a different interpretation.
Compare periods of equal length and state whether fees, taxes and distributions are included.