Financial calculator
CAGR
CAGR compresses multi-year growth into a single annual rate as if returns compounded smoothly each year.
Loading tool…
Recommended next step
Analyze the next scenario
Continue with Annualized return to compare or complete the analysis.
Continue your analysis
Related calculators to explore more financial scenarios.
About this calculator
Compound annual growth rate (CAGR) answers: if an investment grew from a start value to an end value over N years, what constant annual rate would produce the same result?
The usual formula is (end / start)^(1/N) − 1. It ignores path volatility—useful for comparing funds or projects over different horizons.
CAGR is not a forecast. Past growth need not repeat, and fees or deposits change real results.
How to use it
- 1Enter the starting value.
- 2Enter the ending value.
- 3Enter the number of years.
- 4Read the CAGR as a percentage.
Frequently asked questions
- CAGR vs average annual return?
- A simple average of yearly returns can differ from CAGR when returns vary. CAGR is the geometric path that links start to end in N years.
- Can CAGR be negative?
- Yes, if the end value is lower than the start value over the period.
Results are mathematical estimates. Verify the real conditions of any financial product before making decisions.