CAGR formula
CAGR = (final value ÷ initial value)1 ÷ years − 1. It expresses the annualised rate that links two values over a period. It does not show interim volatility, and it may be unsuitable for comparing investments with irregular cash flows.
Important limitations
CAGR smooths the path into one annualised rate and does not show volatility or the sequence of returns. It may not describe cash-flow investments with additions or withdrawals.
Frequently asked questions
Are the results guaranteed?
No. They are estimates based on the values entered and the assumptions described above. Actual outcomes may differ.
Does this include every fee and tax?
No. Review the explanation for this calculator and verify product-specific costs, tax treatment and current rules separately.
What should I do next?
Compare more than one scenario, confirm the inputs and check important figures with the relevant institution or official source before making a financial decision.
For educational and planning purposes only. Not financial, investment or tax advice. Verify current rates, terms and rules before acting.