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CAGR Calculator

Calculate compound annual growth rate from a starting value, ending value, and time period. Use CAGR to compare historical returns across different assets, portfolios, or scenarios.

Instantcalculation Annualizedreturn No sign-uprequired Educationalestimate only

Calculate CAGR

Enter start value, end value, and time period in years.

Use the same currency for start and end values. Decimal years are supported—for example 2.5 years. CAGR assumes smooth annualized growth with no additional deposits or withdrawals. Actual returns may vary year to year.

CAGR
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Instant browser-based estimate

Total return —
Growth multiple —
Start value —
End value —
Years —

Educational estimate only. Not financial advice. CAGR smooths returns and ignores volatility.

CAGR formula

CAGR = (Ending value ÷ Starting value) ^ (1 ÷ Years) − 1

Total return = (Ending value − Starting value) ÷ Starting value

Growth multiple = Ending value ÷ Starting value

CAGR converts total growth over a period into an equivalent annualized rate. It does not mean the investment grew by the same percentage every year.

CAGR calculator examples

Positive growth

Start $10,000 · end $15,000 · 5 years

CAGR +8.45%

A 50% total gain over 5 years equals about 8.45% annualized—not 10% per year because of compounding.

Negative return

Start $10,000 · end $8,000 · 5 years

CAGR −4.36%

A 20% total loss annualizes to about −4.36% per year over 5 years.

Long-term growth

Start $5,000 · end $25,000 · 10 years

CAGR +17.46% · 5.00×

Five times the starting value over a decade implies strong annualized growth—but says nothing about drawdowns along the way.

How to read the CAGR result

  • Positive CAGR means the value annualized upward over the period.
  • Negative CAGR means the value annualized downward over the period.
  • CAGR smooths returns into one annual rate—it does not describe each year's actual return.
  • CAGR ignores volatility and drawdowns—two investments can share the same CAGR with very different risk paths.
  • CAGR is useful for comparing assets or portfolios over different time lengths on an annualized basis.

CAGR vs total return

Metric What it shows Example ($10k → $15k / 5 yr)
Total return Full percentage gain or loss over the entire period +50%
CAGR Equivalent constant annual growth rate +8.45% per year
Growth multiple Ending value relative to starting value 1.50×
  • Two investments can have the same total return but different CAGR if the time periods differ.
  • CAGR does not show risk, volatility, or the path of returns between start and end.
  • Use total return for whole-period outcomes; use CAGR to compare annualized performance across periods.

When to use CAGR

  • Comparing long-term asset returns across different tickers or asset classes
  • Comparing portfolio growth over different holding periods
  • Annualizing historical performance from a start and end snapshot
  • Comparing investments with different start/end dates on an annualized basis
  • Reviewing forecast scenario annualized returns alongside bear/base/bull cases

CAGR should be used together with drawdown, volatility, and total return for better context. See our CAGR educational guide for more detail.

What is CAGR?

CAGR (compound annual growth rate) is the hypothetical constant annual rate at which a value would grow to reach an ending amount over a given period. It smooths total change into one annualized percentage for easier comparison.

This educational calculator works for stocks, crypto, forex, ETFs, indexes, portfolios, and commodities when you have a starting value, ending value, and time period. It assumes no additional deposits or withdrawals during the period.

How the CAGR calculation works

  • Divide ending value by starting value to get the growth multiple.
  • Raise that ratio to the power of 1 ÷ years.
  • Subtract 1 and multiply by 100 to express CAGR as a percentage.
  • Total return and growth multiple are shown alongside for context.

Limitations of CAGR

  • Assumes a single start and end point—ignores contributions, withdrawals, and timing.
  • Does not reflect volatility, drawdowns, or year-by-year variation.
  • Can look strong over short periods that include a lucky entry or exit point.
  • Past CAGR does not predict future annualized returns.
  • Use for education and historical comparison only—not investment advice.

Frequently asked questions

What is CAGR?
CAGR (compound annual growth rate) is the constant annual rate that would grow a starting value to an ending value over a given period. It smooths total growth into one annualized percentage.
How do I calculate CAGR?
CAGR = (Ending value ÷ Starting value) ^ (1 ÷ Years) − 1, expressed as a percentage. Enter your values above and this page calculates each step instantly in your browser.
What is a good CAGR?
There is no universal good CAGR—it depends on the asset class, time period, and risk. Use CAGR to compare historical performance in context with volatility, drawdown, and total return—not as a standalone quality score.
Can CAGR be negative?
Yes. If the ending value is below the starting value, CAGR is negative—it represents an annualized decline. If the ending value is zero, CAGR is −100%.
Can I use decimal years?
Yes. Enter 2.5 for two and a half years, or 0.5 for six months. Any positive time period works with the formula.
Is CAGR the same as annual return?
Not exactly. CAGR is a smoothed annualized rate over the full period. Actual year-by-year returns usually differ because of volatility and the compounding path.
Does CAGR include volatility or drawdown?
No. CAGR only uses start value, end value, and time. It does not show how returns varied year to year, peak-to-trough losses, or risk-adjusted performance.
Is this CAGR calculator free?
Yes. No sign-up is required. Calculations run locally in your browser; inputs are not sent to our servers.
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Past performance does not predict future results. CalculatorInvest provides educational tools only—not financial advice. Read our disclaimer.