Manuals/calci/CAGR

CAGR(StartAmount,EndAmount,NumberOfYearsToEnd,NumberOfYearsToStart)

• Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle StartAmount} is the initial amount of investment
• Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle EndAmount} is the end amount of investment
• Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle NumberOfYearsToEnd} number of years of investment
• Failed to parse (Conversion error. Server ("https://wikimedia.org/api/rest_") reported: "Cannot get mml. Server problem."): {\displaystyle NumberOfYearsToStart} is the number of years to start

Description

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.

Examples

1. =CAGR(1000,10000,3,0) = 1.1544

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) = 0.3797

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 %.

Related Videos

CAGR

See Also

• IRR
• XIRR
• MIRR

References

• CAGR

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