CAGR Calculator
About the CAGR Calculator
Compute the Compound Annual Growth Rate (CAGR) of any investment from its starting value, ending value, and time period. CAGR expresses uneven multi-year growth as the single steady annual rate that would produce the same result. It is the standard way to compare investments held for different lengths of time — a stock that doubled in 3 years versus a fund that tripled in 7.
This tool works in your browser: the files and text you use are processed on your device and are not uploaded.
How to use it
- Open the CAGR tab.
- Enter the starting value, the final value and the number of years between them.
- Read the compound annual growth rate that connects the two values.
Frequently asked questions
What is the CAGR formula?
CAGR = (Ending value ÷ Beginning value)^(1 ÷ years) − 1. For example, growing from $10,000 to $18,000 over 5 years gives (1.8)^0.2 − 1 ≈ 12.5% per year.
How is CAGR different from average annual return?
A simple average ignores compounding and overstates performance when returns vary. An investment that gains 100% then loses 50% has an average return of +25% but a CAGR of 0% — CAGR reflects what actually happened to your money.
What is a good CAGR?
Context matters: broad equity indices have historically delivered 7–10% CAGR over long periods, so a portfolio sustaining 12%+ over a decade is strong. For business revenue, healthy CAGR benchmarks vary hugely by industry and company stage.
Can CAGR be negative?
Yes — if the ending value is below the starting value, CAGR is negative, representing the steady annual rate of decline over the period.
This calculator is for informational and educational purposes only and does not constitute financial advice. Verify important figures with your bank, lender, or a qualified financial advisor.