CAGR: --
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Absolute Gain: --
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How to Use the CAGR Calculator
- Enter the Initial Value – This is your starting amount or investment.
- Enter the Final Value – The total value of your investment or account after growth.
- Input the Time Period (in years) – How long the investment lasted.
- (Optional) Add Contributions – Check the box and include extra deposits if applicable.
- Click Calculate – Instantly see your CAGR, total return, and growth multiple.
You can use this tool for stocks, crypto, trading accounts, mutual funds, or any investment.
What Is CAGR?
The Compound Annual Growth Rate (CAGR) measures how much your investment grows each year on average, assuming the growth was compounded annually.
It helps you compare different investments, strategies, or trading accounts on an equal footing — even if the time periods or returns vary.
Formula
CAGR = (Final Value / Initial Value)^(1 / Years) - 1
If additional contributions are provided:
CAGR = ((Final Value - Total Contributions) / Initial Value)^(1 / Years) - 1
This smooths out the ups and downs to give a consistent, annualized growth rate.
Why CAGR Matters for Traders and Investors
CAGR helps you:
- Measure true annual performance over multiple years
- Compare investments or trading results accurately
- Understand how compounding impacts returns
- Evaluate if your strategy is beating the market or not
Even if your returns vary year to year, CAGR shows the steady rate of growth that would get you from your starting value to your ending value.
Tips for Using CAGR Effectively
- Use CAGR alongside risk metrics like Sharpe ratio or risk/reward ratio for full context
- Consider inflation — CAGR doesn't account for purchasing power
- For short-term traders, use CAGR to evaluate long-term account growth
- Combine this with the Profit Calculator or Risk Ratio Calculator for deeper analysis
Frequently Asked Questions
Trading and investing are inherently risky, and this does not constitute advice for any trades or investments you make. This is simply a tool to be used at your own risk. We assume no liability for losses.
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