CAGR Calculator
Calculate compound annual growth rate for an investment, business or any value.
What CAGR means
Compound annual growth rate is the steady yearly rate that would take you from the starting value to the ending value. The formula is (end ÷ start)^(1 ÷ years) − 1. It smooths out ups and downs so you can compare investments fairly.
Limits
CAGR hides volatility and ignores deposits or withdrawals during the period. Use it as a summary, not a prediction.
Worked example
Last reviewed November 2026. Formulas are standard and shown in the sections above; results are estimates.
Tips and common mistakes
- Use it to compare funds over the same time span.
- It does not include contributions made along the way.
- Always check the risk behind the return.
Learn more
Frequently asked questions
CAGR or average return?
CAGR is more accurate because it accounts for compounding.
Can CAGR be negative?
Yes, if the ending value is lower.
Can I use it for revenue?
Yes, it works for any value that grows over time.
Money guides for this topic
All guides →Investing for Beginners: A Simple Plan with the Numbers
A plain-English starter plan for investing: low-cost index funds, regular contributions and why fees matter.
Read guide →The Rule of 72: How Fast Will Your Money Double?
A one-line mental shortcut for doubling time, with examples, and how it relates to CAGR and compound interest.
Read guide →Compound Interest Explained (and Why Starting Early Wins)
How compound interest works, the rule of 72, and a simple example showing why time matters most.
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Open calculator →Results are estimates and not financial advice.