Determine the annual growth rate of your investments.
Compound Annual Growth Rate (CAGR) is the rate of return (RoR) that would be required for an investment to grow from its beginning balance to its ending balance, assuming the profits were reinvested at the end of each year of the investment's lifespan.
The mathematical formula used in this calculator is:
Where n is the number of years.
Unlike absolute returns, which just show the total profit, CAGR shows the annual consistency of the growth. It is the best metric to compare the performance of different assets like Mutual Funds, Stocks, or Gold over different time periods.
Tool created by Rahul Kumar, Full Stack Developer & Founder of WPFixHub.