CAGR Calculator
Calculate the compound annual growth rate (CAGR) of an investment or business metric over time — enter beginning value, ending value, and time period.
Decimal years accepted (e.g. 2.5)
Enter beginning value, ending value, and time period, then click Calculate.
This is an educational estimate. CAGR assumes smooth compounding over the full period and does not account for taxes, fees, inflation, volatility, or withdrawals. Actual returns vary year to year.
How to use
- Enter the beginning value — the starting amount or metric.
- Enter the ending value — what it grew (or fell) to.
- Enter the time period in years. Decimal values are accepted (for example, 2.5 years).
- Click Calculate CAGR to see the annual growth rate and total growth.
When people use this
- Comparing the performance of different investments over the same period
- Measuring business revenue or user growth across several years
- Checking portfolio returns against a benchmark
- Evaluating population, economic, or market-size growth
- Quick back-of-envelope growth comparisons before deeper analysis
Examples
$10,000 → $20,000 over 7 years: CAGR ≈ 10.41%. The investment roughly doubled, growing at about 10.4% per year on a compounded basis.
$1,000 → $1,500 over 3 years: CAGR ≈ 14.47%. A modest principal gained 50% overall, equal to about 14.5% per year compounded.
Revenue $1,000,000 → $3,000,000 over 5 years: CAGR ≈ 24.57%. The business tripled in size, a compound annual growth rate near 24.6%.
Frequently asked questions
What is CAGR?CAGR stands for Compound Annual Growth Rate — the smooth annual rate that takes a beginning value to an ending value if growth compounded steadily over the period.
How is CAGR different from a simple average return?A simple average ignores compounding. CAGR reflects the effect of earning returns on prior returns, so it is more accurate for multi-year growth comparisons.
Can CAGR be negative?Yes. If the ending value is lower than the beginning value, CAGR is negative, showing the average annual rate of decline.
What are CAGR's limitations?CAGR assumes smooth, steady compounding. It does not show year-to-year volatility, and it ignores taxes, fees, inflation, and cash inflows or outflows during the period.
Does this calculator include dividends or additional contributions?No. Enter only the starting and ending values. Any deposits, withdrawals, dividends reinvested, or other cash flows during the period are not modeled here.
What if I have start and end dates instead of years?Divide the number of days between the dates by 365.25 to get decimal years, then enter that value. For example, 820 days ≈ 2.25 years.