Compound Annual Growth Rate Calculator
CAGR from Values
Calculate CAGR from beginning and ending values
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Future Value from CAGR
Project future value using a given CAGR
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Required CAGR
Calculate the CAGR needed to reach a target
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Formula
CAGR = (Ending Value / Beginning Value)^(1/years) - 1
Frequently Asked Questions
What is CAGR?
Compound Annual Growth Rate (CAGR) is the rate of return that would be required for an investment to grow from its beginning value to its ending value, assuming profits are reinvested. It smooths out volatility to show a constant annual growth rate.
How is CAGR different from average annual return?
CAGR accounts for compounding, while simple average return does not. For example, if an investment goes up 50% one year and down 50% the next, the simple average is 0%, but CAGR shows a loss of about 13.4%.
What is a good CAGR?
The S&P 500 has historically delivered about 10% CAGR before inflation (7% after inflation). A CAGR above 15% is excellent, 10-15% is strong, and 5-10% is moderate for long-term investments.
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