Investment Return (CAGR)

How to use the Investment Return (CAGR)

1. 01
   Enter the initial value. What you invested at the start.
2. 02
   Enter the final value. What it's worth now.
3. 03
   Set the holding period. In years, to get the annualized return.

How is it calculated?

Total return is the simple gain: (final − initial) ÷ initial. CAGR (compound annual growth rate) annualizes it: (final ÷ initial)^(1 ÷ years) − 1, expressed as a percent. CAGR is the steady yearly rate that would turn the starting value into the ending value over the period.