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Find the smooth yearly growth rate between two values.
CAGR stands for compound annual growth rate. It shows the steady yearly rate that would take you from a starting value to an ending value. Real returns bounce around, so CAGR smooths out the ups and downs.
CAGR = (ending value divided by beginning value)^(1 divided by years) – 1.
Want the full story with a worked example? Read the CAGR guide, or see all of our free calculators. For learning only, not advice.