CAGR
Returns the Compound Annual Growth Rate, which represents the smoothed annualized return.
Examples
=CAGR()When to Use
- Long-term performance comparison
- Annualized return calculation
- Investment growth analysis
When NOT to Use
| Scenario | Use Instead |
|---|---|
| Period returns | MonthlyReturns() |
| Cumulative wealth | WealthIndex() |
Common Issues & FAQ
Q: How is CAGR different from average return? A: CAGR accounts for compounding; average return doesn't.
