CAGR Calculator
Calculate the compound annual growth rate between a starting value and an ending value over a number of years.
Last updated · View algorithm, constants and default inputs (JSON)
About this calculator
CAGR is the single smoothed rate that would take your investment from its starting value to its ending value if it grew at a steady pace every year. It removes the noise of year-to-year swings.
Worked example
calculated with the default values below
Starting value 10,000 $ · Ending value 25,000 $ · Number of years 5 years CAGR 20.11 % · Total growth 150.00 % · Ending / starting multiple 2.50 x
General background references
Disclaimer
These calculators give estimates for general information only. They are not financial, tax or investment advice and do not take your personal circumstances into account. Before borrowing, investing or filing, confirm the numbers with a qualified adviser in your jurisdiction.
Implementation source
This record describes the implementation used by this page. It is not independent validation. External references, when available, support only the stated formula or definition; estimates and custom rules retain their own assumptions.
Formula and variables
CAGR = [(V_e ÷ V_b)^(1 ÷ t) − 1] × 100%
- V_e
- Ending value
- V_b
- Beginning value
- t
- Number of years
- CAGR
- Compound annual growth rate
CAGR = (ending value ÷ starting value)^(1 ÷ years) − 1. Starting and ending values and years must be positive; CAGR is undefined for zero or negative values.
Frequently asked questions
Why does CAGR ignore the intervening years?
CAGR uses only starting value, ending value and number of years: (ending ÷ starting)^(1 ÷ years) − 1. A rise from 10,000 to 25,000 over five years gives about 20.1% per year on that smoothed basis, regardless of the path between. The result does not reveal volatility or drawdowns, and the tool does not calculate cash-flow-adjusted returns.