Method
How it works
CAGR converts the change between a starting and ending value into the constant annual growth rate that would produce the same result over the holding period.
It smooths the journey into one annual rate and does not show volatility between the start and end dates. The starting value and holding period must both be greater than zero.
Common questions
Frequently asked questions
Is CAGR the same as average annual return?
No. CAGR is a compounded annual rate and is generally more meaningful than the arithmetic average of yearly returns.
Does CAGR show investment volatility?
No. Different return paths can produce the same CAGR when their starting and ending values match.
What does years to double mean?
It estimates the time required to double at the calculated positive CAGR, assuming that rate continues.
Not financial advice. This calculator is for general informational purposes only. Check figures independently before making financial decisions.