CAGR Calculator

The CAGR Calculator helps you understand how fast an investment grows annually over a specific period. Instead of focusing only on total return, CAGR smooths out volatility and shows your investment’s true long-term growth rate. This is especially useful when comparing different stocks, funds, or portfolios side by side.

Formula: CAGR = (Ending ÷ Beginning)^(1/Years) − 1

Steps:

1) Divide Ending by Beginning

2) Raise the result to the power of 1/Years

3) Subtract 1, then multiply by 100 to get a percentage

Example: Beginning = 10,000; Ending = 15,000; Years = 3
(15,000 ÷ 10,000)^(1/3) − 1 ≈ 1.5^(0.3333) − 1 ≈ 0.1447 → 14.47%

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