07 CAGR Calculator
A noisy return, resolved to one rate.
Real returns are jagged year to year. CAGR is the single smooth annual rate that would have taken you from start to finish.
Compound annual growth rate
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Total gain
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Absolute return
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Money multiple
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How to read this tool What each input changes
CAGR is the single smooth annual rate that would have carried an investment from its start value to its end value, with the noise of the real path stripped out.
- Initial value
- What the investment was worth at the start of the period.
- Final value
- What it is worth at the end. The ratio between final and initial is the entire return that CAGR has to explain.
- Holding period
- How many years passed. The same total gain spread over more years is a lower annual rate, because each year has less to do.
Disclaimer
For illustrative purposes only. Mutual fund investments are subject to market risks. Past returns do not guarantee future performance. This tool does not constitute investment advice.