Determine Compound Annual Growth Rate (CAGR) of investments across time.
| Year | Calculated Value | Cumulative Growth |
|---|
CAGR (Compound Annual Growth Rate) represents the mean annual growth rate of an investment over a specified time period longer than one year.
CAGR = (End Value / Start Value)^(1 / Years) - 1.
Absolute return measures overall total percentage change regardless of time, while CAGR accounts for annual compounding over time.
No, CAGR smooths out annual fluctuation to provide a single steady geometric rate of growth.
CAGR is ideal for evaluating investment performances over multi-year periods like stock investments, mutual funds, or business revenue growth.
Yes, if the final value is lower than initial investment value, CAGR will be negative.