Manuals/calci/CAGR

CAGR(StartAmount,EndAmount,NumberOfYearsToEnd,NumberOfYearsToStart)

• $StartAmount$ is the initial amount of investment
• $EndAmount$ is the end amount of investment
• $NumberOfYearsToEnd$ number of years of investment
• $NumberOfYearsToStart$ 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

XIRR

See Also

• IRR
• XIRR
• MIRR

References

• CAGR

List of Main Z Functions

Z3 home