Investing
CAGR Calculator
Calculate the compound annual growth rate (CAGR) that connects a starting value and an ending value over a number of years.
Enter a beginning value, an ending value, and the number of years to find the steady annual rate that links them together.
Investing
Try the calculator
Scenario presets
Quick compare
Example
Growing $10,000 into $25,000 over eight years works out to a CAGR of roughly 12.1% per year.
Results
CAGR
12.1%
Total growth
150.0%
Ending value
$25,000
Projection
Trend view
Milestones
Decision cues
Breakdown
Cost mix
Result reading
The visual trend is moving up, with an approximate change of $13,786 across the period shown.
Planning cue
Use the output as a scenario test rather than a promise. Small input changes can materially change the result.
CAGR describes the smooth annual rate that connects the start and end values. Real year-to-year returns are usually bumpier.
How it works
What the result is showing you
These sections explain what the calculator measures, which assumptions matter most, and where the number can be misleading.
What CAGR measures
CAGR is the single steady growth rate that would take the beginning value to the ending value over the period, as if it grew the same amount every year. It smooths out the bumps so different investments can be compared on equal footing.
Why it beats a simple average
Averaging yearly returns can be misleading because gains and losses compound on each other. CAGR accounts for that compounding, so it reflects the real path from start to finish rather than a naive average.
Where CAGR can mislead
Because CAGR only looks at the first and last values, it hides the volatility in between. Two investments can share a CAGR while one took a calm path and the other swung wildly. Use it alongside a sense of the risk involved.
FAQ
Frequently asked questions
Quick answers to the questions people ask most about this calculator.
What is the difference between CAGR and average return?
A simple average just adds the yearly returns and divides by the number of years. CAGR accounts for compounding, so it reflects the actual rate that connects the starting and ending values, which is usually lower than a simple average when returns are volatile.
Can CAGR be negative?
Yes. If the ending value is lower than the beginning value, CAGR is negative, describing the steady annual rate of decline over the period.
People also search for
Related tools
Other tools that usually come next
Use these if you want to compare a connected cost, adjust the budget around it, or check the next step in the same decision.
Investing
ROI Calculator
Calculate the return on an investment, including total ROI, net profit, and the annualized rate of return over your holding period.
Investing
Compound Interest Calculator
Estimate how a starting balance and steady monthly investing can grow over time through compound returns.
Investing
Inflation Calculator
Estimate how inflation can raise future costs and reduce the buying power of your money over time.