Compound Annual Growth Rate (CAGR)

Note: JavaScript is disabled. Formula:
CAGR = [ (Final Value / Initial Value)^(1/Years) ] - 1

CAGR Output %

Methodology

CAGR smooths out the returns of an investment over a period of time, providing a steady rate of return that assumes profits were reinvested at the end of each year.

It is the most accurate way to calculate and compare returns for assets, portfolios, or corporate metrics (like revenue growth) that fluctuate wildly year-to-year.