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CAGR Calculator
Find the compound annual growth rate between two values over time.
CAGR
—
Annual growth rate.
| Total growth | — |
|---|---|
| Beginning | — |
| Ending | — |
| Years | — |
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How the CAGR Calculator Works
The Compound Annual Growth Rate is the steady yearly rate that would take an investment from its beginning value to its ending value over a number of years, as if it grew smoothly. It’s CAGR = (ending ÷ beginning)^(1÷years) − 1. Doubling your money in 5 years, for example, is a CAGR of about 14.87%.
CAGR smooths out the ups and downs into one comparable annual figure, which is why it’s the standard way to compare investment returns over different periods.
CAGR = (ending ÷ beginning)^(1 ÷ years) − 1
Frequently Asked Questions
What is CAGR?
The compound annual growth rate — the constant yearly rate that grows the beginning value to the ending value over the period.
How do you calculate CAGR?
Divide the ending value by the beginning value, raise it to the power of one over the number of years, and subtract 1.
Why use CAGR instead of average return?
CAGR accounts for compounding and gives a single, comparable annual figure, whereas a simple average can overstate volatile returns.
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