📈 CAGR Calculator
Calculate compound annual growth rate
How CAGR Calculation Works
Formula
CAGR = (Ending Value / Beginning Value)^(1/years) − 1
- 1Enter the beginning value (initial investment or starting metric).
- 2Enter the ending value (final investment value or ending metric).
- 3Enter the number of years in the period.
- 4The calculator raises the ratio to the power of 1/years and subtracts 1.
- 5The result is the smoothed annual growth rate over the period.
About CAGR Calculator
Calculate Compound Annual Growth Rate (CAGR) from beginning value, ending value, and time period. Compare investment performance and business growth over any timeframe.
Frequently Asked Questions
What is CAGR?
CAGR is the rate at which an investment would have grown if it grew at a steady rate every year. It smooths out volatility to give one annualized growth number. It's not the actual yearly return, but a useful comparison metric.
Is CAGR the same as average return?
No. CAGR accounts for compounding while simple average return does not. If an investment goes up 100% then down 50%, the average return is 25% but CAGR is 0% — you're back where you started.
What is a good CAGR?
The S&P 500 has historically delivered about 10% CAGR (7% after inflation). A CAGR above 15% is exceptional for long-term investments. Short-term high CAGR may not be sustainable.