IN PLAIN ENGLISH
Compound annual growth rate: the steady yearly rate that would produce a period's total result.
WHERE YOU MEET IT
The Annualised Growth tile in Stat Tiles, measured from your first purchase and excluding dividends.
WATCH OUT FOR
Money added later is treated as if invested from day one, which pulls the figure towards zero.
FULL DEFINITION
Compound Annual Growth Rate — the smoothed yearly rate at which invested capital has grown across the life of the portfolio.
EXAMPLE
£10,000 invested grows to £13,310 over 3 years. CAGR = (13,310 ÷ 10,000)^(1/3) − 1 = 10.00%.
HOW IT'S CALCULATED
CAGR = (end value ÷ total buy cost)^(1 ÷ years held) − 1, where end value = total buy cost + realised gains + unrealised gains, and years held is measured from your earliest recorded buy date to today (365.25 days per year). Returns 0 if there is no buy history, no elapsed time, or a non-positive end value. Dividends are excluded.
EXPLAINED IN
Educational content only. It is not personal financial advice.