🚀 CAGR Calculator

About this CAGR Calculator

CAGR — compound annual growth rate — smooths a lumpy journey into one steady yearly rate: the rate at which the beginning value would have to grow every single year to reach the ending value. Investors use it to compare funds, businesses and assets over different time spans on equal terms, because unlike a simple average it accounts for compounding.

How to use it

1. Enter the value at the start — an investment, revenue or price.
2. Enter the value at the end.
3. Enter how many years passed between them (fractions like 2.5 work too).
4. Click Calculate CAGR to get the yearly rate and the total growth.

Example

Growing from 100,000 to 250,000 in 5 years is a total gain of 150%, which works out to a CAGR of about 20.1% per year.

Frequently asked questions

How is CAGR different from average yearly growth?

A simple average adds up yearly returns and divides — it overstates growth when returns swing. CAGR uses only the start and end values and compounding, so it is the true smoothed rate.

Can CAGR be negative?

Yes. If the ending value is below the beginning value, the formula gives a negative rate — the average yearly rate of decline.

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