CAGR Calculator
Compound annual growth rate normalizes volatile returns into a single yearly figure for benchmarking on Jenzzy.
Inputs
Results
Enter values to see results.
Formula
CAGR = (Final/Initial)^(1/years) − 1
Geometric mean growth rate that would produce the ending value from the starting value over n years.
Example
- Ratio: 1.8^(1/5) ≈ 1.1247
- CAGR: ≈ 12.47%= 12.47%
Result: 12.47% compound annual growth
Frequently Asked Questions
CAGR vs average return?
CAGR accounts for compounding; simple averages overstate growth.
Volatility?
CAGR ignores path—two portfolios with same endpoints share the same CAGR.
Dividends?
Reinvested dividends belong in final value.