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The CAGR
calculator is a useful tool when determining an annual growth rate
on an investment whose value has fluctuated widely from one period
to the next.
To use the calculator, begin by entering the value of your investment
today, or its present value,
into the "ending value" field. In the field for "beginning
value," enter the initial value you placed into your investment.
Finally, enter the number of years that you were invested.
Please fix these errors:
Interpretation:
Over the course of #NoPeriods# periods
your investment grew from #BeginVal# to
#EndingVal#, its compound annual growth
rate, or its overall return, is #CAGR#.
CAGR essentially smoothes out the progress
of your investment over a period of time,
providing a clearer picture of your annual
return. However, although your investment
started at #BeginVal# and ended with #EndingVal#,
its growth in any one year may have been
quite a bit higher or even negative (if
the investment ever lost money over that
time). Consequently, the CAGR figure may
give the impression that the investment
has produced a stable return throughout
its life, even if the investment was extremely
volatile, fluctuating a great deal from
year to year.
"
>
Over the course of #NoPeriods# periods
your investment declined from #BeginVal#
to #EndingVal#, and its compound annual
growth rate or its overall return, is
#CAGR#.
CAGR essentially smoothes out the progress
of your investment over a period of time,
providing a clearer picture of your annual
return. However, although your investment
started at #BeginVal# and ended with #EndingVal#,
its growth in any one year may have been
quite a bit lower or even positive (if
the investment gained money over that
time). Consequently, the CAGR figure may
give the impression that the investment
has produced a stable return (or, in this
case, a decline) throughout its life,
even if the investment was extremely volatile,
fluctuating a great deal from year to
year.
"
>
OOPS!!!
Over the course of #NoPeriods# your investment has not grown at all. Either you
have mistakenly entered the same value in both fields ending value and
beginning value fields, or have made an investment for which no CAGR may be
calculated.
"
>
Please try again.
Related Links:
CAGR: the Good, the Bad and the Ugly - Learn not only what compound annual growth rate is but also what its benefits,
limitations, and dangers are.
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