What you provide
What you provide
- Starting value: Value at the beginning of the measurement period.
- Ending value: Value at the end of the same period.
- Measurement period: Elapsed years between the two values.
INVESTING / SMOOTHED GROWTH
Turn starting and ending values over a selected number of years into a compound annual growth rate, total return, and overall growth multiple.
Use boundary
CAGR takes the nth root of the ending-to-starting value ratio, where n is elapsed years, and subtracts one to create a smooth annual rate.
CAGR = (ending value / starting value)^(1 / years) - 1.
What you provide
What you receive
Use boundary
CAGR hides volatility, interim cash flows, fees, taxes, drawdowns, and the path taken between endpoints.
This is an educational planning estimate. Confirm lender, issuer, tax, accounting, and contractual rules with the relevant provider or qualified adviser before acting.