CAGR Calculator

Calculate Compound Annual Growth Rate.

Last updated: 14 August 2026

Processed locally — your files are not uploaded to any server.

Comprehensive Guide & Specifications

Everything you need to know about using CAGR Calculator effectively.

What is CAGR Calculator and Why Use It?

Compound annual growth rate is the constant yearly rate that would take a starting value to an ending value over a given period — the smoothed rate, which is what makes investments held for different lengths of time comparable at all. Enter the beginning value, the ending value and the number of years, and you get that rate. It is the right measure when someone quotes a total return without saying over how long, or when a three-year holding needs comparing with an eight-year one. What it deliberately hides is volatility: two investments with identical CAGR can have taken wildly different paths, and the risk simply is not visible in the number. It also needs a positive starting value, since growth from zero has no meaningful rate, and it assumes a single amount left alone, so deposits or withdrawals along the way break the calculation.

Step-by-Step Instructions

1
Input your beginning initial investment balance.
2
Enter the ending portfolio or asset valuation.
3
Specify the investment duration in years to calculate the precise CAGR percentage.

Formula / Calculations Explained

Compound Annual Growth Rate Formula

CAGR = (Ending Value / Beginning Value)^(1 / n) - 1

EVEnding investment or portfolio value

BVBeginning initial investment value

nNumber of years the investment was held

Determines the constant smoothed annual growth rate required for an investment to grow from its beginning balance to its ending balance over multiple years.

Important Considerations

CAGR deliberately hides volatility. Two investments with the same CAGR can have had wildly different journeys, and the risk is not visible in the number.
It needs a positive starting value; growth from zero has no meaningful rate.
Deposits and withdrawals along the way break the calculation — it assumes a single amount left alone.

Frequently Asked Questions

Why is CAGR preferred over simple average annual return?▼

CAGR accounts for geometric compounding and portfolio volatility, providing a true smoothed annual growth figure rather than an inflated arithmetic average.

Does CAGR account for periodic interim withdrawals?▼

Standard CAGR evaluates only start and end values over time. For irregular interim cashflows, XIRR (Extended Internal Rate of Return) is typically used.

Is this financial tool completely free?▼

Yes, it is 100% free, private, and runs entirely in your browser with zero data logging.

Worked example

Example only — not financial advice

An investment that grew from $10,000 to $25,000 over 5 years rose 150.00% in total, but that single number hides how uneven the path may have been. CAGR — (End ÷ Start)^(1/years) − 1 — restates the same growth as one steady annual rate, 20.11% here, so growth over different periods can be compared like for like.

Worked example: $10,000 growing to $25,000 over 5 years
Example input	Value
Initial value	$10,000
Final value	$25,000
Duration	5 years
Total absolute growth	150.00%
Compound Annual Growth Rate (CAGR)	20.11%

These figures illustrate how the CAGR Calculator computes its result for the example inputs above — they are not a rate offer, a market quote, or a recommendation for your own numbers. Enter your own figures in the calculator above to get a result that applies to you.

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