CAGR Calculator
Calculate the compound annual growth rate between a starting and ending value over any number of years.
CAGR is the steady yearly rate that would take a starting value to an ending value. It smooths out the ups and downs.
It is the fairest way to compare investments held for different lengths of time.
How it works
Divide the end value by the start value. Take the root for the number of years, then subtract one.
The chart shows the smooth path at that rate. Real results bounce around it.
The formula
End = ending value, Start = starting value.
Tips
- CAGR hides volatility. Two investments with the same CAGR can have very different journeys.
- Use it for anything that grows: revenue, users, a house price, a portfolio.
Frequently asked questions
What is the difference between CAGR and average return?
Average return adds up yearly returns and divides. CAGR accounts for compounding, so it is always lower when returns vary.
Can CAGR be negative?
Yes. If the ending value is below the starting value the rate is negative.
This is not financial advice. Nothing on this site is investment, tax, legal or financial advice of any kind.
The calculators give simplified estimates from the numbers you enter. They ignore taxes, fees, rate changes and real market returns, and they can be wrong.
Do not make financial decisions based on these results. Speak to a licensed financial adviser, accountant or lender before acting, and read the full disclaimer.