The compounded annual growth rate of an investment, often abbreviated CAGR, is the average rate at which an investment grows over a certain period of time, assuming the investment has been compounding over that time period. The formula to calculate CAGR is:
CAGR = (Ending value/Starting value)1/periods – 1
where ending value is the ending value of the investment, starting value is the starting value of the investment, and periods is the number of investment periods (months, years, etc.)
To find the CAGR for an investment, simply fill in the values below and then click the “Calculate” button.
CAGR = 8.354%