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CAGR Calculator

Calculate the constant annual growth rate that mathematically connects a starting value and ending value across a selected period.

Calculation, not advice. Results are illustrative and depend entirely on the values entered.

01

Your assumptions

$
$
years
02

Your result

Illustrative

Compound annual growth rate

—

Based on the assumptions entered

Relative magnitude of displayed valuesNegative values use absolute height

Important: This simplified estimate may exclude taxes, fees, timing differences, changing rates and other real-world conditions.

The concept

What CAGR does—and does not—show

CAGR summarizes a start-to-end change as if growth occurred at one constant annual rate.

It hides volatility, interim losses, contributions and withdrawals, so it should not be read as the actual return in every year.

The method

How the calculation works

Ending value is divided by starting value. The result is raised to the inverse of elapsed years, then one is subtracted and the figure is expressed as a percentage.

CAGR = (ending value / starting value)^(1/years) − 1

CAGR smooths the entire change into one equivalent annual rate.

Worked example

A neutral example

Growth from $10,000 to $20,000 over 10 years corresponds to a CAGR of about 7.18%.

This example explains the method. It does not recommend a financial action or predict an outcome.

Frequently asked

CAGR Calculator questions

Can CAGR be negative?+

Yes, when ending value is below starting value but remains non-negative.

Why must starting value be positive?+

It is the denominator and base of the root calculation.

Does CAGR include cash flows?+

No. Use a cash-flow return method when contributions or withdrawals matter.