Calculateur de TCACFormule

## CAGR Formula

**CAGR = (Ending Value / Beginning Value)^(1/n) - 1**

CAGR smooths out the return over the period, giving you the consistent annual rate that would produce the same final result.

Exemple Résolu

$10,000 invested grows to $25,000 in 5 years.

  1. CAGR = (25000/10000)^(1/5) - 1
  2. = 2.5^0.2 - 1
  3. = 1.2011 - 1 = 0.2011
  4. CAGR = 20.11%
  5. Total return = 150%