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CAGR

Calculates the compound annual growth rate between two values.

Interactive inputs coming — use the formula and example below.

Rechenbeispiel

Growing $1,000 to $2,000 in 7 years is about 10.4% CAGR.

So funktioniert's

  • Use the formula below with your own figures.

Die Formel

CAGR = (end/start)^(1/years) − 1.

Rechenbeispiel

Growing $1,000 to $2,000 in 7 years is about 10.4% CAGR.

Häufige Fragen

Why use CAGR?

It smooths returns into one annual rate.

Does it show volatility?

No — it ignores the path taken.

Tipps

  • Time in the market beats timing the market.
  • Reinvest returns to let compounding work.
  • Keep fees low — they compound against you.

Begriffe

Compounding
Earning returns on past returns.
CAGR
The smoothed annual growth rate.
Yield
Income as a percent of price.