CAGR Calculator
Calculate the Compound Annual Growth Rate (CAGR) between a beginning and ending value over any time period, and see a year-by-year growth projection.
Enter your numbers
CAGR smooths out year-to-year volatility into a single average annual growth rate — useful for comparing investments, revenue, or any value that changes over multiple years.
Applies the rate to your beginning value and years to fill in an ending value.
- Total growth
- $15,000
- Growth multiple
- 2.5x
Year-by-year growth
In plain terms
Growing from $10,000 to $25,000 over 5 years is the same as growing at a steady 20.11% every single year, even if the real path was bumpier.
What CAGR does not show
- Volatility: Two investments with the same CAGR can have very different year-to-year swings.
- Cash flows: CAGR ignores deposits or withdrawals made during the period — it only compares the start and end values.
- Risk: A higher CAGR does not mean a safer investment, just a higher average annual return.
Good to know
CAGR assumes smooth, compounding growth every year. It's a useful single number for comparing investments or forecasts, but the actual value may have risen and fallen along the way rather than growing at a constant rate.
About the CAGR Calculator
Compound Annual Growth Rate (CAGR) is the single, steady annual rate that would take a starting value to an ending value over a given number of years, assuming the growth compounded evenly every year. It's one of the most widely used metrics for comparing investment returns, business revenue growth, or any value that changes over multiple periods, because it smooths out short-term ups and downs into one comparable figure.
The formula is CAGR = (Ending Value ÷ Beginning Value)^(1 ÷ Years) − 1. Enter your beginning value, ending value, and the number of years between them, and this calculator works out the CAGR instantly, along with the total growth, growth multiple, and a year-by-year projection showing how the value would compound if it grew at that steady rate every year.
How to Use the CAGR Calculator
- Enter your beginning value. The starting amount — an initial investment, opening revenue, or any starting figure.
- Enter your ending value. What that amount grew (or shrank) to by the end of the period.
- Set the number of years. Use the quick-select buttons or type an exact figure, including fractional years if needed.
- Or try a benchmark rate. Pick a preset like the S&P 500 historical average to auto-fill an ending value based on your beginning value and years.
- Read the results. Your CAGR, total growth, growth multiple, and a year-by-year compounding chart all update instantly.
Common Use Cases
Comparing investment performance
Compare a stock, fund, or portfolio's CAGR against a benchmark like the S&P 500 over the same period.
Tracking business growth
Work out the average annual growth rate of revenue, users, or any business metric across several years.
Setting realistic goals
Use the benchmark presets to see what ending value a realistic growth rate would produce for your starting amount.
Evaluating property or asset value
Calculate the annualized growth rate of a house, collectible, or other asset between purchase and sale.
Frequently Asked Questions
What is CAGR?
CAGR (Compound Annual Growth Rate) is the constant annual rate that would grow a beginning value into an ending value over a set number of years, assuming steady compounding. It's a single number that makes it easy to compare growth across different investments or time periods.
What's the CAGR formula?
CAGR = (Ending Value ÷ Beginning Value)^(1 ÷ Years) − 1, expressed as a percentage. For example, growing $10,000 to $25,000 over 5 years gives a CAGR of about 20.1%.
Is CAGR the same as average annual return?
No. A simple average adds up each year's return and divides by the number of years, which can overstate growth when returns vary. CAGR instead uses compounding, so it reflects the actual constant rate that connects the beginning and ending values.
Can CAGR be negative?
Yes — if the ending value is lower than the beginning value, CAGR will be negative, showing the annualized rate of decline over the period.
Does CAGR account for deposits or withdrawals?
No. CAGR only looks at the beginning and ending values — it assumes no additional money was added or removed during the period. For investments with regular contributions, a money-weighted return (like XIRR) is more accurate.
What's a good CAGR for an investment?
It depends on the asset class and risk taken. Government bonds might average 3-5% CAGR, the S&P 500 has historically averaged around 10% over the long run, and high-growth startups can target 20%+ — but higher CAGR generally comes with higher risk and volatility.
Can I use CAGR for periods under a year?
You can enter a fractional number of years (like 0.5 for six months), but CAGR is designed for comparing multi-year growth. For very short periods, a simple percentage change is usually clearer.