CAGR Calculator
Find the compound annual growth rate (CAGR) — the smooth, annualized rate that takes a starting value to an ending value over a number of years. It is the standard way to compare investments that grew unevenly over different time spans.
CAGR strips out the year-to-year volatility and answers a single question: what steady annual return would have produced this result? Enter the beginning and ending values and the years to see it.
Compound annual growth rate
10.41%
- Total return
- 100%
- Total growth
- $10,000
- Growth multiple
- 2×
Calculation Formulas
The constant annual rate that compounds the beginning value into the ending value over the given number of years.
Example:
$10,000 growing to $20,000 over 7 years → (20,000 ÷ 10,000)^(1/7) − 1 ≈ 10.41% per year.
Total return is the cumulative gain over the whole period; the multiple expresses it as “×” (e.g. 2× means the money doubled).
Key Figures
| Figure | Value | Description |
|---|---|---|
| Rule of 72 | 72 ÷ CAGR ≈ years to double | A quick check: a 9% CAGR doubles money in about 8 years. |
| CAGR hides volatility | Smoothed | CAGR reflects only start and end values, not the path or risk between them. |
Note: Results are estimates for planning purposes. Rates, fees, taxes, and insurance vary by lender and location — confirm exact figures with a licensed professional before making financial decisions.
Standards & Sources
Last verified: July 2026
- Geometric mean return (standard finance definition)
CAGR is the geometric mean of annual growth, the accepted way to annualize multi-period investment returns and compare them fairly.
- Consistent with our compound interest calculator
A beginning value compounded at the resulting CAGR for the same years reproduces the ending value exactly — the inverse of forward compounding.
How to Use This Calculator
- Enter the beginning value (what the investment started at).
- Enter the ending value (what it is worth now).
- Enter the number of years between the two.
- Read the CAGR, along with the total return and how many times your money grew.
Frequently Asked Questions
What is CAGR?
CAGR (compound annual growth rate) is the constant annual rate at which an investment would have grown from its starting value to its ending value if it compounded steadily each year. It smooths out volatility into a single comparable annual figure.
What is the CAGR formula?
CAGR = (Ending value ÷ Beginning value)^(1 ÷ years) − 1. For example, growing $10,000 to $20,000 over 7 years is (20,000 ÷ 10,000)^(1/7) − 1 ≈ 10.4% per year.
How is CAGR different from average annual return?
A simple average of yearly returns ignores compounding and overstates growth when returns vary. CAGR accounts for compounding and reflects the actual start-to-finish result, which is why it is the standard for comparing investments.
What are the limitations of CAGR?
CAGR assumes smooth growth and hides the volatility along the way — two investments with the same CAGR can have very different risk. It also ignores contributions or withdrawals made during the period; it measures only the start and end values.
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