CAGR Calculator
Find the compound annual growth rate (CAGR) between a starting and ending value over any number of years.
How to use the CAGR Calculator
- Enter the value at the start of the period.
- Enter the value at the end of the period.
- Enter how many years passed between the two.
- Your compound annual growth rate appears instantly.
CAGR = (Ending ÷ Starting)^(1 ÷ years) − 1
About the CAGR Calculator
CAGR (compound annual growth rate) is the single yearly rate that would grow your starting amount into your ending amount, as if it rose by the same percentage every year. It smooths out the ups and downs so you can compare investments, funds or revenue on an equal footing.
Unlike a simple average, CAGR accounts for compounding — each year builds on the last. That makes it the standard way to describe how fast an investment or a company has actually grown over several years.
Use it to compare two investments held for different lengths of time, sanity-check a fund’s advertised returns, or see how long it takes to reach a target at a given growth rate.
Frequently asked questions
What is a good CAGR?
There is no universal benchmark — a good CAGR only means something next to a comparison you can source: the same asset class over the same period, an index, or the rate you actually need to hit your goal. A negative CAGR simply means the value fell over the period.
How is CAGR different from average return?
A simple average just adds yearly returns and divides. CAGR accounts for compounding and the order of returns, so it reflects the real growth you actually experienced.
Does CAGR include dividends or extra deposits?
No. CAGR only uses the start and end value. If you added money along the way, use a SIP or investment calculator for an accurate picture.