Starting value, Ending value, Years
CAGR Calculator
Find the steady yearly growth rate that turns a starting value into an ending value.
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How this calculator works
CAGR smooths out a bumpy series into one annual rate. It answers: if this had grown by the same percentage every year, what would that percentage be? It is used to compare investments, revenue or any figure measured at two points in time. It says nothing about the ups and downs in between.
Formula
- CAGR = (ending value / starting value)^(1 / years) − 1
- Total return = ending value / starting value − 1
Worked example
10,000 growing to 20,000 in 5 years
- Starting value
- 10,000
- Ending value
- 20,000
- Years
- 5 years
Result14.87% per year
Compound annual growth rate from 10,000.00 to 20,000.00 over 5 years.
Things to keep in mind
- CAGR hides volatility: two investments with the same CAGR can have very different risk.
- Figures are estimates for planning. They are not financial advice, and they ignore taxes and fees unless stated.
Frequently asked questions
What is a good CAGR?
It depends on the asset. Broad US stock indexes have returned roughly 10% a year before inflation over the long run; a savings account might return 1-4%.
How is CAGR different from average annual return?
A simple average of yearly returns overstates growth when returns vary. CAGR is the geometric rate that reproduces the actual ending value.
Can CAGR be negative?
Yes. If the ending value is lower than the starting value, CAGR is negative.
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Results are estimates based on the values you enter and the published method shown above. They do not replace professional medical, financial or legal advice. Method reviewed October 7, 2026. About this site