CAGR Calculator
Calculate the Compound Annual Growth Rate (CAGR) of your investments. Enter the beginning value, ending value, and number of years to find the annualized growth rate, total return, and growth multiplier.
CAGR Calculator
FAQ
What is CAGR?
CAGR (Compound Annual Growth Rate) represents the mean annual growth rate of an investment over a specified period longer than one year. It smooths out volatility to show steady growth.
How is CAGR different from average return?
CAGR accounts for compounding while average return does not. CAGR gives you the actual annualized return, whereas average return can overstate performance in volatile markets.
What is the CAGR formula?
CAGR = (Ending Value / Beginning Value)^(1/Years) - 1. For example, growing from $10,000 to $20,000 in 5 years gives CAGR = (2)^(0.2) - 1 = 14.87%.