How to Use the Compound Annual Growth Rate (CAGR) Calculator
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1
Enter Beginning Investment / Portfolio Value.
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2
Enter Final Ending Value.
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3
Enter Number of Years (or fraction of years).
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4
View exact CAGR (Annualized Growth Rate %), Total Overall Growth %, and annual growth multiple.
Practical Example & Use Case
Measuring that a company growing from $250,000 to $1,000,000 over 5 years achieved a stellar 31.95% CAGR.
Technical Notes & Limitations
Uses the official geometric formula: `CAGR = (End / Start)^(1 / Years) - 1`.
Frequently Asked Questions
Why is CAGR better than average annual return?
CAGR accounts for the geometric compounding effect of gains and losses, providing an accurate metric of annual growth smoothing out volatility.