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CAGR Calculator (Compound Annual Growth Rate)

Calculate compound annual growth rate from beginning value, ending value, and number of years. Compare growth across different time periods.

Use the CAGR Calculator (Compound Annual Growth Rate)

Enter beginning value, ending value, and number of years. CAGR and total return % are calculated.

Values and period

Beginning value, ending value, and number of years.

Results

CAGR (%)
14.29%
Total return (%)
95%

CAGR = (Ending / Beginning)^(1 / Years) - 1. Single annual rate that would grow beginning to ending over the period.

How this calculator works

Enter beginning value, ending value, and number of years. CAGR = (Ending/Beginning)^(1/Years) - 1. Total return % = (Ending - Beginning)/Beginning. CAGR is the geometric average annual return.

How to interpret your results

CAGR lets you compare investments over different periods. A 8% CAGR over 10 years means the investment grew at an equivalent 8% per year. It does not show the path or volatility in between.

Common mistakes to avoid

Using CAGR as a forecast; confusing it with average annual return (arithmetic); or applying it when there are significant cash flows (use IRR or other tools instead).

FAQs

What is CAGR?▾
CAGR is the constant annual rate that would grow the beginning value to the ending value over the given number of years. Formula: (Ending/Beginning)^(1/Years) - 1.
Which inputs matter most?▾
Beginning value, ending value, and number of years. All three are required. Small changes in years can change CAGR noticeably.
What assumptions does this calculator make?▾
Growth is assumed to be compounded once per year. No cash flows between start and end; only the two values and the period matter.
How accurate are the results?▾
The formula is exact for the inputs. CAGR does not show volatility; it smooths the path between start and end. Use for comparison, not as a forecast.
Can I use this for planning decisions?▾
Yes. Use CAGR to compare historical performance of investments or to set a target growth rate over a horizon. Do not rely on it as the only metric.

Related tools

Browse all calculators on NetGrow.

NetGrow

CAGR Calculator (Compound Annual Growth Rate)

Calculate compound annual growth rate from beginning value, ending value, and number of years. Compare growth across different time periods.

Use the CAGR Calculator (Compound Annual Growth Rate)

Enter beginning value, ending value, and number of years. CAGR and total return % are calculated.

Values and period

Beginning value, ending value, and number of years.

Results

CAGR (%)
14.29%
Total return (%)
95%

CAGR = (Ending / Beginning)^(1 / Years) - 1. Single annual rate that would grow beginning to ending over the period.

How this calculator works

Enter beginning value, ending value, and number of years. CAGR = (Ending/Beginning)^(1/Years) - 1. Total return % = (Ending - Beginning)/Beginning. CAGR is the geometric average annual return.

How to interpret your results

CAGR lets you compare investments over different periods. A 8% CAGR over 10 years means the investment grew at an equivalent 8% per year. It does not show the path or volatility in between.

Common mistakes to avoid

Using CAGR as a forecast; confusing it with average annual return (arithmetic); or applying it when there are significant cash flows (use IRR or other tools instead).

FAQs

What is CAGR?▾
CAGR is the constant annual rate that would grow the beginning value to the ending value over the given number of years. Formula: (Ending/Beginning)^(1/Years) - 1.
Which inputs matter most?▾
Beginning value, ending value, and number of years. All three are required. Small changes in years can change CAGR noticeably.
What assumptions does this calculator make?▾
Growth is assumed to be compounded once per year. No cash flows between start and end; only the two values and the period matter.
How accurate are the results?▾
The formula is exact for the inputs. CAGR does not show volatility; it smooths the path between start and end. Use for comparison, not as a forecast.
Can I use this for planning decisions?▾
Yes. Use CAGR to compare historical performance of investments or to set a target growth rate over a horizon. Do not rely on it as the only metric.

Related tools

Browse all calculators on NetGrow.