CAGR Formula

The CAGR formula calculates the average annual growth rate of an investment, incorporating the effects of compounding. The formula is used to assess and compare the performance of investments over time, providing a consistent metric for measuring growth. By using the CAGR formula, investors can make more informed decisions and evaluate long-term growth in portfolios or individual assets.

• Calculates the average annual growth rate of an investment.
• Incorporates compounding effects for more accurate results.
• Essential for evaluating long-term growth performance.
• Used in portfolio and asset analysis.