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CAGR from Trade History Calculator

Calculate compound annual growth rate (CAGR) from trade history, including returns, dates, and contributions.

CAGR from Trade History Calculator

Calculate compound annual growth rate (CAGR) from trade history, including returns, dates, and contributions.

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Guide

Calculating CAGR from trade history and portfolio performance

  • CAGR = ((End Value / Start Value)^(1 / Years)) - 1. CAGR represents the annualized growth rate assuming compounding.
  • Enter start value and end value, plus start date and end date (or trade history) to calculate the time period accurately.
  • Alternatively, paste trade history with dates and portfolio values. The calculator will use the first and last values.
  • CAGR smooths out volatility and provides a single annualized return figure, making it easier to compare performance across different time periods.
  • CAGR assumes constant compounding. Actual returns may vary year-to-year, but CAGR provides a useful summary metric for long-term performance.

Frequently Asked Questions

CAGR, compound growth, and portfolio performance

What is CAGR?

CAGR (Compound Annual Growth Rate) is the annualized growth rate of an investment over a period, assuming constant compounding. It smooths out volatility to provide a single return figure.

How is CAGR calculated?

CAGR = ((End Value / Start Value)^(1 / Years)) - 1. It represents the constant annual growth rate that would produce the same final value if applied each year.

Why use CAGR instead of total return?

CAGR annualizes returns, making it easier to compare performance across different time periods. Total return doesn't account for time, so a 50% return over 1 year is very different from 50% over 10 years.

Can CAGR be negative?

Yes. Negative CAGR indicates the investment declined over the period. For example, if $10,000 becomes $8,000 over 2 years, CAGR is negative.

How does CAGR handle contributions and withdrawals?

CAGR based on start and end values includes the effect of contributions and withdrawals. For more accurate analysis, use time-weighted returns or calculate CAGR for each period separately.

What is a good CAGR?

Good CAGR depends on asset class, risk tolerance, and market conditions. Stocks historically return 7-10% CAGR, while bonds return 3-5% CAGR. Higher CAGR often comes with higher volatility.

How does volatility affect CAGR?

CAGR doesn't directly show volatility. Two portfolios with the same CAGR can have very different volatility. Use CAGR alongside metrics like maximum drawdown or standard deviation for complete analysis.

Can I use CAGR to project future returns?

CAGR is based on past performance and doesn't guarantee future returns. Use it as a guide, but remember that past performance doesn't guarantee future results.

How do I calculate CAGR with multiple contributions?

For multiple contributions, use the first and last portfolio values (including contributions) to calculate CAGR. Alternatively, use time-weighted returns or calculate CAGR for each contribution period separately.

What is the difference between CAGR and average return?

CAGR accounts for compounding, while average return is the simple average of annual returns. CAGR is more accurate for long-term growth analysis, as it reflects the effect of compounding.

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CAGR from Trade History Calculator

Calculate compound annual growth rate (CAGR) from trade history, including returns, dates, and contributions.

How to use CAGR from Trade History Calculator

Step-by-step guide to using the CAGR from Trade History Calculator:

  1. Enter your values. Input the required values in the calculator form
  2. Calculate. The calculator will automatically compute and display your results
  3. Review results. Review the calculated results and any additional information provided

Frequently asked questions

How do I use the CAGR from Trade History Calculator?

Simply enter your values in the input fields and the calculator will automatically compute the results. The CAGR from Trade History Calculator is designed to be user-friendly and provide instant calculations.

Is the CAGR from Trade History Calculator free to use?

Yes, the CAGR from Trade History Calculator is completely free to use. No registration or payment is required.

Can I use this calculator on mobile devices?

Yes, the CAGR from Trade History Calculator is fully responsive and works perfectly on mobile phones, tablets, and desktop computers.

Are the results from CAGR from Trade History Calculator accurate?

Yes, our calculators use standard formulas and are regularly tested for accuracy. However, results should be used for informational purposes and not as a substitute for professional advice.