CAGR Calculator
Calculate the Compound Annual Growth Rate — the single smoothed yearly rate that turns a starting value into an ending value over time.
CAGR
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Total growth —
Value doubles every —
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How it works
CAGR = (end ÷ start)^(1/years) − 1Frequently Asked Questions
What is CAGR and why use it?
CAGR is the steady annual rate that would produce the same overall growth: $10,000 becoming $18,000 in 5 years is a 12.47% CAGR. It makes investments of different lengths directly comparable.
How is CAGR different from average return?
Averaging yearly returns ignores compounding and overstates results after volatile years (+50% then −50% averages 0% but loses 25%). CAGR reflects what actually happened to your money.
What is a good CAGR?
The US stock market's long-run CAGR is roughly 10% nominal (about 7% after inflation); a business growing revenue at 20%+ CAGR is fast-growing. Judge against the asset class, not a universal bar.