CAGR Calculator
Find the compound annual growth rate between a starting and ending value.
About this cagr calculator
The compound annual growth rate (CAGR) is the steady yearly rate that would take a value from its starting point to its ending point over a period. It smooths out the ups and downs, which makes it the standard way to compare investment returns, revenue growth or user growth over different time spans.
Enter a beginning value, an ending value and the number of years; the calculator returns the CAGR, the total percentage growth and the growth multiple.
How to use the CAGR Calculator
- Enter the beginning value.
- Enter the ending value.
- Enter the number of years between them (decimals are fine).
- Read the CAGR.
The CAGR formula
CAGR = (Ending ÷ Beginning)1 ÷ years − 1
CAGR describes a smooth path; real values rarely grow evenly. It also ignores deposits and withdrawals in between, so for portfolios with cash flows a money-weighted return is more accurate.
Worked example
An investment that grew from $10,000 to $18,000 over 5 years has a CAGR of (1.8)0.2 − 1 ≈ 12.47%, even though total growth was 80%.
Tips for better results
- Don't divide total growth by years — 80% over 5 years is not 16% a year, because growth compounds.
- Use CAGR to compare investments held for different lengths of time.
Frequently asked questions
Can CAGR be negative?
Yes. If the ending value is below the beginning value, CAGR is negative, showing the average yearly decline.
What is the difference between CAGR and average return?
Average return is the arithmetic mean of yearly returns; CAGR is the geometric rate that actually connects the start and end values. CAGR is lower when returns are volatile.
This calculator provides estimates for planning only and is not financial advice. Confirm exact figures with your lender or a licensed professional.
Last reviewed: October 2026 · Results are calculated in your browser.