CAGR Calculator
Find the Compound Annual Growth Rate between a starting and ending value over time.
What CAGR tells you
CAGR = (End ÷ Start)^(1/years) − 1. It's the single steady annual rate that would take you from the starting value to the ending value over the period — useful for comparing investments that grew unevenly year to year, since it smooths that out into one comparable number.
About the CAGR Calculator
CAGR, or Compound Annual Growth Rate, is the steady yearly rate at which an investment would have to grow to move from its starting value to its ending value over a number of years. It smooths out ups and downs, making it easier to compare funds, stocks, business revenue or any figure that grows over time.
The formula is (ending value divided by starting value) raised to the power of one divided by the number of years, minus one. CAGR is a smoothed average, not a promise; it ignores volatility, deposits and withdrawals during the period. For cash flows over time, XIRR is a better measure.
How to use it
- Enter the beginning value.
- Enter the ending value.
- Enter the number of years (decimals allowed).
- Read the CAGR percentage.
Tips and good to know
- Use the same units and currency for start and end.
- A longer period usually gives a more meaningful number than one or two years.
- Compare CAGR with inflation to see real growth.
Frequently asked questions
Is CAGR the same as average annual return?
No. A simple average of yearly returns ignores compounding and is usually higher.
Can CAGR be negative?
Yes, if the ending value is lower than the starting value.
Does it include dividends?
Only if you include them in the ending value.