The CAGR form calculates the Compound Annual Growth Rate (CAGR) for a given portfolio over 1, 2, 5, 10 and 20 years.
This is the past growth rate of the portfolio over the given time periods. Reminder that past performance is no guarantee of future performance.
So it is important to take this data as a guide and not as a statement of fact. You can use the information as a guide for numbers to use and adjust in the DRIP Calculator.
The Compound Annual Growth Rate (CAGR) is a measure of the mean annual growth rate of an investment over a specified time period longer than one year. It represents one of the most accurate ways to calculate and determine returns for anything that can rise or fall in value over time.
Where \(EV\) is ending value, \(BV\) is beginning value, and \(n\) is number of years.