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INVESTING CALCULATOR

CAGR Calculator

CAGR compresses a multi-year change into one smoothed annual rate. It is useful for comparison but hides the path, volatility, and timing of cash flows.

Calculator

years
YOUR RESULTS
Compound annual growth rate14.8698 %
Absolute change
10,000.00
Total return
100 %
Growth multiple
2 ×

CAGR is the constant annual rate that would connect the starting and ending values over the selected time.

Understanding your result

Total return answers how much value changed overall. CAGR answers which constant annual rate would create the same endpoints.

For the total percentage gain or loss over the full holding period, use the ROI Calculator instead of interpreting an annualized rate as a total return.

The formula

CAGR = (Ending ÷ Starting)^(1 ÷ years) − 1

Starting and ending are positive values measured on the same basis. Years is the elapsed holding period, including decimal years. The formula returns a decimal rate; multiply by 100 to express it as a percentage.

Worked example

Growing from 10,000 to 20,000 over five years produces a CAGR of about 14.87%, even if actual yearly returns were uneven.

How to use this calculator

  1. Enter the value at the beginning and at the end of the period, using the same currency or measurement.
  2. Enter the elapsed time in years; use 2.5 for two years and six months.
  3. Compare the annualized rate with total return and the growth multiple. Do not use endpoint CAGR when money was added or withdrawn during the period.

Why holding time changes the comparison

Doubling a value over five years gives about 14.87% annualized growth; doubling it over ten years gives about 7.18%. Both have a 100% total return, but the longer period spreads that change over more years. Compare CAGR figures only after checking that each period and endpoint is measured consistently.

Contributions can disguise the investment return

An account can grow because its investments gained value or because you deposited more money. CAGR treats the full endpoint change as growth, so intermediate deposits and withdrawals distort that interpretation. A cash-flow return calculation is needed when the amounts and dates of those transactions matter.

Assumptions & limitations

What this calculation assumes

  • Positive starting and ending values.
  • The time period can include decimal years.
  • No intermediate cash flows.

What to keep in mind

  • It does not show volatility or drawdowns.
  • It is not an arithmetic average of yearly returns.
  • Negative or zero endpoints are unsupported.

Common questions

Can CAGR be negative?

Yes, when the ending value is below the starting value.

Is CAGR the same as total return?

No. CAGR annualizes; total return covers the whole period.

Why can’t the start be zero?

The formula divides by the starting value and takes a root.