CAGR Calculator
Calculate the Compound Annual Growth Rate (CAGR) of an investment over time.
Calculate
Enter your values below.
Result
CAGR
0
Formula used
CAGR = (Ending ÷ Beginning)1/years − 1
Example: $10,000 growing to $20,000 over 5 years → CAGR ≈ 14.87%.
How to use this calculator
- Enter Beginning value, Ending value, Number of years.
- Press Calculate to see your result instantly.
FAQ
Frequently asked questions
What does CAGR represent?
The smoothed, constant annual growth rate that would take the beginning value to the ending value over the given period.
How is this different from average annual return?
CAGR accounts for compounding, so it's usually more accurate than a simple average of yearly returns.
Can CAGR be negative?
Yes, if the ending value is lower than the beginning value.
Where is CAGR commonly used?
Comparing investment or business growth performance across different time periods.