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Finance & LoansGenerated accuracy model review: 2026-05-06
Average Return (CAGR) accuracy and testing
This page documents how Calwarden builds trust for this calculator: source notes, regression-style default tests, limitations, assumptions, unit handling, rounding, and visible change history.
Formula source
- CAGR = (Ending Value / Beginning Value)^(1 / Number of Years) - 1. It essentially asks: 'What constant interest rate would get me from Start to End in this many years?'
Test cases
Default input regression check
Generated from the checked-in default inputs and calculate function.
Inputs
- Beginning Value: $1,000
- Ending Value: $2,500
- Number of Years: 5
Expected outputs
- CAGR: 20.11%
- Total Growth: 150.00%
Known limitations
- CAGR does not account for deposits or withdrawals made during the time period. For that, use XIRR (Internal Rate of Return).
Assumptions
- Inputs are interpreted exactly as entered in the calculator form.
- The calculation runs locally in the browser using the current checked-in calculator definition.
Unit handling
- Beginning Value accepts values in $.
- Ending Value accepts values in $.
- Number of Years accepts numeric values.
- CAGR is displayed as a percentage.
- Total Growth is displayed as a percentage.
Rounding rules
- Number displays use up to 2 decimal places in the calculator UI.
- Percent outputs are displayed with two decimal places.
Version history
1.0.0 - 2026-05-06
Generated accuracy and testing page from the current average-return-calculator calculator definition.
Change log
2026-05-06
Published default regression test documentation and metadata fallbacks for Average Return (CAGR).
Calculator transparency
Accuracy pages are generated from checked-in calculator definitions and can be upgraded with curated review metadata over time.