CAGR calculator
Enter beginning value, ending value and years to get the CAGR.
CAGR calculator
Calculate the compound annual growth rate (CAGR) — the smoothed average yearly growth that takes a starting value to an ending value over a number of years. It’s the standard way to compare investment or revenue growth across different periods.
Formula
CAGR = (ending ÷ beginning)^(1 ÷ years) − 1. Example: 1,000 growing to 2,500 over 5 years is a CAGR of 20.1% per year. Unlike a simple average, CAGR accounts for compounding, so it reflects the real yearly rate.
Frequently asked questions
Is CAGR the same as average return? No — a simple average ignores compounding and tends to overstate growth; CAGR is the true annualised rate.
What if the value fell? CAGR is negative, showing the average yearly decline.