📈CAGR Calculator

Calculate Compound Annual Growth Rate for investments.

Initial Value ($)

Final Value ($)

Number of Years

About CAGR Calculator

Measure the steady annual growth rate of an investment over any time period with this CAGR Calculator. Enter the beginning value, ending value, and number of years to get the Compound Annual Growth Rate — the single rate that represents consistent growth from start to finish. CAGR is the gold standard for comparing investments held over different time periods.

How to Use CAGR Calculator

1
Enter start and end values
Input the initial investment value and the final value at the end of the period.
2
Set the time period
Enter the number of years over which the growth occurred.
3
Use your CAGR
Compare the resulting CAGR against benchmarks or other investments to evaluate performance.

Common Use Cases

Comparing the performance of two investments held over different periods
Calculating the growth rate of a company's revenue or earnings
Evaluating mutual fund or ETF performance
Projecting future investment value at a target growth rate

Frequently Asked Questions

What is CAGR and why is it useful?

CAGR (Compound Annual Growth Rate) smooths out year-to-year volatility to show the equivalent steady annual rate of growth. It's ideal for comparing investments, business metrics, or any value that grows over multiple years.

What is the CAGR formula?

CAGR = (Ending Value / Beginning Value) ^ (1 / Number of Years) - 1. For example, an investment that grows from $10,000 to $16,105 over 5 years has a CAGR of 10%.

What is a good CAGR for an investment?

The S&P 500 has historically delivered a CAGR of around 10% before inflation. A CAGR above 15% is considered strong for a diversified portfolio; individual stocks or funds may exceed this.