Calculate the annualized growth rate between an initial value and a final value over a chosen number of years.
Compound Annual Growth Rate (CAGR) is an annualized measure of growth over a period. It smooths the path between the starting and ending values into a single annual rate, even though real-world growth may be uneven.
CAGR = (Final Value / Initial Value)1 / Years − 1. CAGR is useful for comparing growth rates across investments or business metrics, but it does not show volatility or the path taken between the start and end points.
Educational use only. Historical CAGR does not guarantee future performance.