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CAGR calculator

Enter the starting value, the ending value, and the number of years. The calculator shows the compound annual growth rate (CAGR), the total growth over the period, and the total gain as you type.

Use it to find the single annualized rate that turns a starting value into an ending value over a number of years, plus the total growth and total gain.

USD
USD

CAGR (annualized)

14.87%

Original value Gain
Total growth
100%
Total gain
$10,000.00

The result updates as you type. The bar splits the ending value into the original amount and the gain on top.

How does it work?

CAGR is the single annual rate that would turn the starting value into the ending value over the period. It smooths out ups and downs and is not the same as the total growth. You supply both values yourself.

Compound annual growth rate formula

CAGR=(VfVi)1/n−1CAGR = \left(\frac{V_f}{V_i}\right)^{1/n} - 1
V_f
Ending value (final value).
V_i
Starting value (initial value).
n
Number of years over the period.

A value that grows from 10,000 to 20,000 over 5 years has a CAGR of about 14.87% (2^(1/5) − 1), even though the total growth is 100%.

Method & sources

CAGR smooths the change into a single annualized rate over the whole period; the value did not necessarily grow this evenly year to year. Intermediate ups and downs (volatility) within the period are ignored; only the starting and ending values matter. Additional contributions or withdrawals during the period are not accounted for.

Sources

Where this method comes from — use these references to understand the formula, assumptions, and limits.

How we calculate

  • CAGR smooths the change into a single annualized rate over the whole period; the value did not necessarily grow this evenly year to year.
  • Intermediate ups and downs (volatility) within the period are ignored; only the starting and ending values matter.
  • Additional contributions or withdrawals during the period are not accounted for.
  • Fees, taxes, and inflation are not included; the rate is nominal.
  • The currency shown follows the site language; the growth math is the same in every market.
  • You supply both the starting and ending values yourself; the calculator does not look up any data.

Rounding

Rates and amounts are rounded to two decimals for display. The calculation uses full precision.

What this calculator does

The compound annual growth rate (CAGR) is the single yearly rate that would take a starting value to an ending value over a fixed number of years, as if it grew by the same percentage each year. This calculator divides the ending value by the starting value, takes the year-root, and converts it to a percentage. It also shows the total growth over the whole period and the total gain in money terms.

How to use it

  1. Enter the starting value at the beginning of the period.
  2. Enter the ending value at the end of the period.
  3. Enter the number of years between the two.
  4. Read the CAGR, the total growth, and the total gain below.

A worked example

A value that grows from 10,000 to 20,000 over 5 years has a CAGR of about 14.87%. The total growth over the whole period is 100% (the value doubled), and the total gain is 10,000. Notice that the annualized rate is far lower than the total growth because growth compounds.

CAGR versus total return

CAGR is not the same as the total return. The total return here is 100% because the value doubled, but spread over 5 years that works out to about 14.87% per year, not 20%. CAGR answers "what steady annual rate gets me here?", which makes it easy to compare investments held for different lengths of time.

Common mistakes

  • Reading CAGR as the total growth. CAGR is per year; total growth is over the whole period.
  • Assuming the value actually grew this smoothly. CAGR ignores the ups and downs in between.
  • Forgetting that contributions, fees, and taxes are not part of this figure.

When it's useful

Comparing investments, funds, revenue, or any quantity that changed over several years, where you want a single annual rate that accounts for compounding.

FAQ

How is CAGR calculated?
Divide the ending value by the starting value, raise the result to the power of one divided by the number of years, subtract one, and multiply by 100. That gives the compound annual growth rate as a percentage.
How is CAGR different from total growth?
Total growth is the change over the whole period. CAGR is the equivalent steady rate per year. A value that doubles over 5 years has 100% total growth but a CAGR of about 14.87%.
Can the CAGR be negative?
Yes. If the ending value is lower than the starting value, the CAGR is negative, which means the value shrank by that rate each year on average.
Does it account for contributions, fees, or taxes?
No. CAGR uses only the starting value, the ending value, and the number of years. Extra deposits, withdrawals, fees, and taxes are not included.
Which currency does it use?
The currency follows the site language. The growth math is identical in every market.
Can I share a calculation?
Yes. Use Share to copy a link that reopens the calculator with the same starting value, ending value, and years.

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