CAGR Calculator
Enter a starting value, an ending value, and the number of years between them to see the compound annual growth rate.
Overview
CAGR smooths an investment's growth into a single steady annual rate, even if the actual year-to-year returns were uneven. It's the standard way to compare the performance of two investments held over different time periods, or to compare an investment against a benchmark, without the swings of individual years muddying the comparison.
Examples
100,000 grows to 200,000 over 5 years
Initial: 100000, Final: 200000, Years: 5
CAGR: 14.87% Growth Multiple: 2.00x
How It Works
- Enter the initial value at the start of the period.
- Enter the final value at the end of the period.
- Enter the number of years between the two values — the CAGR and growth multiple appear instantly.
FAQ
No. Every calculation runs locally in your browser.
CAGR = ((Final Value ÷ Initial Value)^(1/years) − 1) × 100.
Average annual return simply averages each year's percentage gain, which can be skewed by a single outlier year. CAGR instead finds the single steady rate that would take the initial value to the final value over the whole period, which is a more accurate picture of compounded growth.
No. CAGR compares a single starting value to a single ending value — ongoing contributions or withdrawals during the period aren't factored in.