How does a CAGR calculator work, and are you measuring your investment returns correctly? Learn how to calculate compound annual growth rate, understand the CAGR formula and interpret annualised investment performance. Discover why contributions and withdrawals can make simple CAGR calculations misleading, when to use XIRR instead and how to evaluate your returns against appropriate benchmarks.

Most investors don’t actually know their true returns — they track prices, not performance. This guide explains how to calculate CAGR in Excel step-by-step, so you can measure your investment performance accurately and make more informed decisions.