CAGR calculator

The compound annual growth rate (CAGR) is the constant yearly rate that takes an investment from its starting value to its ending value. It smooths out volatile years so you can compare investments held for different lengths of time.

CAGR

13.09%

Total growth: 85.00%
Growth multiple: 1.85×

Year	Value at CAGR
0	10,000.00
1	11,309.26
2	12,789.95
3	14,464.49
4	16,358.27
5	18,500.00

1. Математическая формула и расчетное тождество

CAGR = (Ending value ÷ Starting value)^(1 ÷ Years) − 1

2. Инструкция по использованию и входные параметры

Enter the starting value, the ending value and the holding period in years. Fractional years are allowed, so 2.5 years works.

The projection table compounds the starting value at the CAGR so you can see the path that a steady return would have taken.

3. Модельные допущения и границы применимости

CAGR ignores the timing of deposits and withdrawals. If you added or removed money during the period, use a money-weighted return (IRR) instead.
It describes a past or hypothetical path; it says nothing about volatility or risk.

4. Часто задаваемые вопросы и риск-комментарии (FAQ)

Is CAGR the same as the average annual return?

No. The arithmetic average of yearly returns is higher than CAGR whenever returns vary. A +50% year followed by a −50% year averages 0% but has a CAGR of about −13.4%, because you end with 75% of what you started with.

Can CAGR be negative?

Yes. If the ending value is below the starting value the CAGR is negative. It cannot be calculated if either value is zero or negative.

Как риск-менеджеры могут независимо верифицировать расчеты «CAGR calculator»?

QuantCalc Tools публикует точные аналитические формулы и конвенции начисления на этой странице. Вы можете воспроизвести расчет в Python/Pandas и проверить лицензию контрагента через центр верификации QuantCalc Tools.

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