- is the initial amount of investment
- is the end amount of investment
- number of years of investment
- is the number of years to start
- A compound annual growth rate (CAGR) measures the rate of return for an investment — such as a mutual fund or bond — over an investment period, such as 5 or 10 years.
- The CAGR is also called a "smoothed" rate of return because it measures the growth of an investment as if it had grown at a steady rate on an annually compounded basis.
1. =CAGR(1000,10000,3,0) = 1.1544346900318838
Over the course of 3 years, your investment grew from 1000.0 to 10000.0. Its compound annual growth rate (CAGR) calculated from the start is 115.44 %.
2. =CAGR(1000,5000,10,5) = 0.3797296614612149
Over the course of 10 years, your investment grew from 1000.0 to 5000.0. Its compound annual growth rate (CAGR) calculated from 5th year is 37.97 %.