38 · Calculators

CAGR Calculator

Enter where a value started, where it ended and how many years it took to get the smoothed yearly growth rate.

CAGR

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How to use the cagr calculator

  1. Enter the starting value.
  2. Enter the ending value.
  3. Enter the number of years between them.

The CAGR formula

CAGR = (end ÷ start)1 ÷ years − 1. It’s the single yearly rate that would take the start value to the end value if growth were perfectly even. Real growth is bumpy, so CAGR is best for comparing, not predicting.

Examples

10,000 grows to 18,000 in 5 years

12.47% a year

100 doubles to 200 in 10 years

7.18% a year

Questions

How is CAGR different from average return?

A simple average of yearly returns ignores compounding and overstates growth when returns swing. CAGR accounts for compounding.

Can the years be a fraction?

Yes. 2.5 years works fine.