Calculate Compound Annual Growth Rate of your investment
Compound Annual Growth Rate (CAGR) is the rate of return that would be required for an investment to grow from its beginning balance to its ending balance, assuming the profits were reinvested at the end of each year of the investment's lifespan.
It effectively smooths out the volatility in returns that an investment might have experienced over a period.
The formula for calculating CAGR is:
Where 'n' is the number of years. This metric is crucial for comparing the historical performance of different assets or funds.