Calculate annualized growth rate (or CAGR) and related metrics, given a series of yearly returns.
Let us demonstrate the functionality of the Annualized Growth Calculator from FinCrafters app using the last 5-year return from the S&P 500 index including dividends.
The annual returns from 2015 to 2019 are input as shown. The first metric calculated is the multiple earned on the initial investment amount at the end of the investment period. Other metrics reported include the annualized return or CAGR, volatility measure and the arithmetic mean of the annual returns. Refer to “Investment Return and Volatility Explained” to understand the math behind the metrics.
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