CAGR Calculator
Calculate Compound Annual Growth Rate (CAGR) to understand the mean annual growth rate of an investment over time.
Pro Tip
"CAGR is great for comparing investment performance over different periods, but it ignores volatility during the period."
CAGR Projection Ready
Enter your investment values and time period to see your compound annual growth rate.
CAGR Calculator
Calculate Compound Annual Growth Rate (CAGR) to understand the mean annual growth rate of an investment over time.
What is CAGR?
The Compound Annual Growth Rate (CAGR) is the rate of return that would be required for an investment to grow from its beginning balance to its ending balance, assuming the profits were reinvested at the end of each year of the investment’s lifespan.
Smoothed Growth
Unlike regular annual returns, CAGR smooths out market fluctuations to show a steady growth rate over time.
CAGR Formula
CAGR = [(Ending Value / Beginning Value) ^ (1 / Number of Years)] - 1CAGR is one of the most accurate ways to calculate and determine returns for anything that can rise or fall in value over time. It 'smooths' the return of an investment over a period of time.
Investment Growth Examples
Long-term Investment
An investment that grows from $10,000 to $25,000 over 5 years has a CAGR of 20.11%.
Short-term Growth
A $1,000 investment growing to $1,500 in 2 years represents a CAGR of 22.47%.