State the formula and period
For starting value S, ending value F and holding period y years, CAGR = (F/S)^(1/y) − 1. The year-length convention should be explicit. This site’s calculator uses user-entered days divided by 365.
A constructed example
A value moving from 100 to 121 over two years has a 10% compound annual rate. This is a mathematical example, not an investment forecast. A short-period annualization can magnify a temporary change.
Know when endpoints are insufficient
The endpoint formula does not correctly isolate investment return when external cash flows occur during the period. Use an appropriate time-weighted or money-weighted method instead. CAGR also does not show the size or timing of interim losses.
Educational guide. No backtest or live trading result is reported on this page.