Find the Compound Annual Growth Rate (CAGR) between two values, over any number of years.
Takes the nth root of the growth multiple, smoothing an uneven multi-year return into a single annual rate.
CAGR: (Ending ÷ Beginning)^(1/years) − 1
Does CAGR reflect year-to-year volatility?
No. CAGR turns everything into one smooth, steady rate. Two investments can have the same CAGR, even if one had a much bumpier journey to get there than the other.