FinCalcs

CAGR Calculator

Measure the smoothed annual growth rate of an investment.

Runs locally in your browser — your numbers never leave this page
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Try: Beginning value=10000, Ending value=25000, Years=5 → $10,000, $25,000, 5, 20.11%

How to use

Enter your starting amount, ending amount and the number of years. CAGR smooths volatile year-to-year returns into one steady rate.

Formula

CAGR = (EV / BV)1/n − 1

BV = beginning value, EV = ending value, n = years. It is a geometric mean, not an arithmetic average.

FAQ

Is CAGR the same as average return?

No. CAGR is the constant rate that would grow the start value to the end value; it hides the bumps along the way.

Can CAGR be negative?

Yes, if the ending value is below the beginning value the result is a negative growth rate.

What period should I use?

Use the full holding period in years. For partial years use decimals, e.g. 2.5.

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