The compounded annual growth rate of an investment, often abbreviated CAGR, is the average rate at which an investment grows over a certain period of time, assuming the investment has been compounding over that time period. The formula to calculate CAGR is:
CAGR = (Ending value/Starting value)1/periods – 1
where ending value is the ending value of the investment, starting value is the starting value of the investment, and periods is the number of investment periods (months, years, etc.)
To find the CAGR for an investment, simply fill in the values below and then click the “Calculate” button.
Zach is the author behind Four Pillar Freedom, a blog that teaches you how to build wealth and gain freedom in life.
He quit his day job as a data scientist in 2019 because he was able to earn enough income from profitable websites to replace his salary. He now teaches people how to start and grow their own profitable websites from scratch in the Income Community.
Zach's favorite free financial tool he's been using since 2015 to manage his net worth is Personal Capital. Each month he uses their free Investment Checkup tool and Retirement Planner to track his investments and ensure that he's on the fast track to financial freedom.
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