Annualized investment return
Annualized investment return: use initial value, final value, holding period. Review the formula, worked example and calculation steps.
Inputs
Use the units shown—
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Formula & explanation
CAGR % = [(final/initial)^(1/years)−1] × 100
Variables & units
- Initial value
- currency · minimum 0.01, maximum 1000000000000
- Final value
- currency · minimum 0.01, maximum 1000000000000
- Holding period
- years · minimum 0.000001, maximum 100
Worked example
1,000 growing to 1,210 over two years gives 10% per year.
Assumptions
Assumes no intermediate contributions or withdrawals; this is a geometric return, not an arithmetic average.
Formula version 1.0.0. JavaScript floating-point arithmetic applies. Results display up to 6 decimal places; stored values retain available precision. Use the units shown.
Practice with an example
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