Calculate the compounded annual growth rate of a gold investment. CAGR converts a multi-year start-to-end result into a single annualized growth rate, making long holding periods easier to compare.
Use net beginning and ending values.
CAGR answers the hypothetical question: what constant annual growth rate would turn the starting amount into the ending amount over the stated period?
Total return tells you how much the investment changed overall. CAGR adds time and expresses that change as an annualized compounded rate. A 100% total gain does not mean a 100% annual return.
For meaningful investment comparisons, use values that are consistent about costs. If the starting amount includes acquisition costs, the ending amount should reflect relevant exit costs when appropriate.
The constant annualized rate connecting the starting and ending values.
Ending value divided by starting value, raised to 1 divided by years, minus 1.
No.
It can when the input values are net of fees.
Yes, when the underlying inputs are measured consistently.