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quoting nevent1q…zawg

It’s just some algebra applied to the compound growth formula, and condensed into calculator instructions. 😅

The compound growth formula is:

final = start (1 + rate) ^ n

Where n is the number of periods (years in our case). Given the other values, we can solve for rate:

final = start (1 + rate) ^ n

final / start = (1 + rate) ^ n

( final / start ) ^ (1/n) = ( (1 + rate) ^ n ) ^ (1/n)

( final / start ) ^ (1/n) = (1 + rate)

1 + rate = ( final / start ) ^ (1/n)

Skipped a few steps in the derivation, but you get the idea. So all you have to do is divide final by start, then raise that value to the inverse of the number of periods.

You can use this to compute your gains in fiat terms. For example, if you bought Bitcoin in the crab market of $9k in 2020, then:

(1 + rate) = ( 63k / 9k ) ^ (1/4)

1 + rate = 1.6266…

rate = +63% CAGR