📈 CAGR Calculator
Calculate CAGR from start and end values or exact dates, find the end value or time needed at a rate, and compare CAGR with the average annual return.
10,000 grew to 19,500 over 5 years — a total change of 95.00%.
Year-by-year growth at 14.29%
| Year | Value |
|---|---|
| 0 | 10,000 |
| 1 | 11,428.97 |
| 2 | 13,062.13 |
| 3 | 14,928.66 |
| 4 | 17,061.91 |
| 5 | 19,500 |
What CAGR Calculator Does
This CAGR calculator finds the compound annual growth rate between two values — from a number of years or from exact start and end dates — and works in reverse too: the end value a given rate produces, or how long it takes to reach a target. A fourth mode takes a list of yearly values and shows the CAGR next to the simple average of the yearly returns, which are often surprisingly different.
CAGR is the single steady rate that would have turned the starting value into the ending value. Real growth is never that smooth, but the smoothing is the point: it lets you compare an investment held for 3.5 years with one held for 10, or revenue growth at two companies, on the same footing. Add an inflation rate to see the real, purchasing-power growth.
How to Use CAGR Calculator
- Choose what to find: CAGR, end value, time needed, or CAGR from yearly values
- Enter the start value and end value, rate or period
- Optionally use exact dates or enter an inflation rate for real growth
- Read the result and the year-by-year growth path
- For yearly values, compare CAGR with the simple average return
Formula Used by CAGR Calculator
CAGR
CAGR = (End ÷ Start)^(1 ÷ years) − 1
Worked example
$10,000 grew to $19,500 in 5 years.
- 19,500 ÷ 10,000 = 1.95
- 1.95^(1/5) = 1.1429
- 1.1429 − 1
Result: 14.29% a year.
Time to reach a target
Years = ln(End ÷ Start) ÷ ln(1 + rate)
Worked example
Doubling at 8% a year.
- ln(2) = 0.6931
- ln(1.08) = 0.0770
- 0.6931 ÷ 0.0770
Result: 9.01 years.
Real (inflation-adjusted) growth
Real rate = (1 + CAGR) ÷ (1 + inflation) − 1
Worked example
CAGR 7%, inflation 3%.
- 1.07 ÷ 1.03 = 1.0388
Result: 3.88% real growth a year — slightly less than 7% − 3%.
Why the Average Return Overstates Growth
Simple average of the returns: 19.17%. CAGR: 12.47%. Only the CAGR, compounded for 4 years, turns 100 into 160.
| Year | Value | Return that year |
|---|---|---|
| Start | 100 | — |
| 1 | 150 | +50.00% |
| 2 | 90 | −40.00% |
| 3 | 120 | +33.33% |
| 4 | 160 | +33.33% |
How to Read Your Result
What CAGR hides
CAGR ignores the path. A fund that rose steadily and one that crashed and recovered can show the same CAGR, but they were very different to hold. Look at the yearly returns, or a measure of volatility, alongside it.
Deposits and withdrawals
CAGR assumes nothing was added or taken out. If you contributed money along the way, the end value overstates growth; use a money-weighted measure such as IRR for accounts with regular deposits.
Limitations & Accuracy Notes
- Start values must be above zero; CAGR is undefined when the start is zero or negative.
- Date mode uses 365.25-day years.
- Past growth rates do not predict future results.