a smoothed rate of return.

"},"rowId":"wHFT_rE"},{"type":"inputNumber","key":"i5ZXz","props":{"title":"Initial Investment Value","helpText":"Enter the starting value of your investment.","defaultValue":1000,"required":true,"hidden":false,"hasMin":true,"hasMax":false,"minValue":0,"maxValue":null},"rowId":"SQv6uua"},{"type":"inputNumber","key":"8WNvD","props":{"title":"Ending Investment Value","helpText":"Enter the final value of your investment.","defaultValue":2000,"required":true,"hidden":false,"hasMin":true,"hasMax":false,"minValue":0,"maxValue":null},"rowId":"SQv6uua"},{"type":"inputSlider","key":"Xm9CG","props":{"title":"Investment Period (Years)","defaultValue":5,"required":false,"hidden":false,"showNumberField":true,"step":1,"min":1,"max":50},"rowId":"oy-ExbG"},{"type":"divider","key":"Wliy-","props":{},"rowId":"C1POLS6"},{"type":"text","key":"YkJKe","props":{"text":"

Your estimated CAGR is:

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@cagr_result%

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Note: CAGR assumes the investment compounded steadily over the period and does not account for investment risk or volatility.

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How to calculate CAGR?

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CAGR measures the return on an investment over multiple years, smoothing out volatility.

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Formula: CAGR = [(Ending Value / Beginning Value)^(1 / Years)] - 1

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Using the CAGR calculator: an example

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Example: Initial investment of $10,000 growing to $15,000 over 5 years.

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Step-by-step calculation:

"},"rowId":"pkDmCS3"},{"type":"text","key":"HalXN","props":{"text":"

Divide ending value by beginning value (1.5)
Raise result to the power of 1/5 (0.2)
Subtract 1 to get the decimal rate (0.0845)
Multiply by 100 for percentage (8.45%)

"},"rowId":"58kMAr7"},{"type":"text","key":"TysyT","props":{"text":"

Frequently Asked Questions

"},"rowId":"wraP-rE"},{"type":"text","key":"yTNYU","props":{"text":"

What is a good CAGR?

"},"rowId":"nwMAs5F"},{"type":"text","key":"Y3efA","props":{"text":"

A 'good' CAGR depends on the asset class; for stocks, 8-12% is often considered strong, while for savings, it is lower.

"},"rowId":"BNvrDHF"},{"type":"text","key":"YUx_b","props":{"text":"

Does CAGR account for risk?

"},"rowId":"5MZ_O5B"},{"type":"text","key":"nGV_1","props":{"text":"

No, CAGR only measures returns and does not reflect the investment risk or volatility experienced during the period.

"},"rowId":"KWOfjg8"}]},"logic":[{"id":"P3wEG","type":"always","rules":[],"actions":[{"type":"calculate","target":"2jQn42h","formula":{"raw":"( ( ( @field:Ending_Investment_Value::8WNvD / @field:Initial_Investment_Value::i5ZXz ) ^ ( 1 / @field:Investment_Period_Years::Xm9CG ) ) - 1 ) * 100","json":[{"type":"operator","value":"("},{"type":"operator","value":"("},{"type":"operator","value":"("},{"type":"field","value":"8WNvD","id":"8WNvD"},{"type":"operator","value":"/"},{"type":"field","value":"i5ZXz","id":"i5ZXz"},{"type":"operator","value":")"},{"type":"operator

Compound Annual Growth Rate (CAGR) Calculator

How to calculate CAGR?

Using the CAGR calculator: an example

Step-by-step calculation:

Frequently Asked Questions

What is a good CAGR?

Does CAGR account for risk?

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