Calculate the compound annual growth rate between a starting and ending value.
Calculated locally in your browser.
How is CAGR calculated?
CAGR = (ending ÷ starting)^(1 ÷ years) − 1. It expresses growth as a constant yearly rate, ignoring year-to-year volatility, which makes it useful for comparing investments. For example, growing 10,000 to 26,000 over 5 years is a CAGR of about 21.06% per year — the steady rate that would produce the same result.
Understanding your result
CAGR ignores year-to-year volatility, showing the steady rate that would produce the same result — useful for comparing investments.
Formula and method
CAGR = (ending ÷ starting)^(1 ÷ years) − 1. It expresses growth as a constant yearly rate.
Worked example
Growing 10,000 to 26,000 over 5 years is a CAGR of about 21.06% per year.
How to use this tool
- Enter the starting and ending values.
- Enter the number of years.
- Press Calculate.
About the CAGR Calculator
The CAGR Calculator finds the smoothed annual rate at which an investment grew from a starting value to an ending value over a number of years.
Frequently asked questions
How is CAGR different from average return?
Average return is the simple mean of yearly returns; CAGR is the compounded rate, which accounts for gains building on previous gains.