Compound Annual Growth Rate — the true annualized return of any investment.
Investment Details
Please enter valid positive values for all fields.
CAGR
—
Total Return
—
Absolute Gain
—
Formula: CAGR = (Ending Value / Beginning Value)1/n − 1
CAGR smooths out year-to-year volatility to give you the steady annual rate that would get you from your starting value to your ending value. It does not reflect what happened in each individual year — it's the geometric mean return.
Growth Projection — $1,000 at this CAGR
Years
Value
Total Return
What is CAGR? Compound Annual Growth Rate is the rate at which an investment would have grown if it grew at a steady rate each year. It's the standard way to compare investments of different lengths. A stock that went 0%, +100%, +0% has a CAGR far lower than one that returned 26% each year — even though the first tripled in value over three years.