What It Does
Converts total growth into annualized CAGR for easy performance comparison.
CAGR Calculator
Find annualized growth rate between beginning and ending values. CAGR helps compare performance consistently across different durations.
- Standard annualized return metric
- Useful for comparing funds or strategies
- Includes total return and Rule of 72 view
When to Use CAGR
Best used when comparing growth over multiple years.
- Compare strategies with different durations
- Track annualized business or portfolio growth
- Convert absolute growth into yearly rate
CAGR inputs
Formula: CAGR = (End / Begin)1/n - 1
CAGR output
CAGR--
Total Return--
Rule of 72 (years)--
Use alongside risk profile and volatility analysis.
How to Enter Inputs Correctly
Use accurate starting value, ending value, and duration for meaningful annualized return.
How to Enter
Enter beginning value, ending value, and period in years or fractional years.
How to Read
Use CAGR with risk and volatility context; high CAGR may include higher uncertainty.
Calculator FAQ
Is CAGR the same as average annual return?
No. CAGR is geometric annualized growth, usually more reliable for multi-year comparison.
Can CAGR be negative?
Yes. If ending value is lower than beginning value, CAGR can be negative.
Why show Rule of 72?
It gives a quick approximation of years needed to double at the calculated rate.