Free CAGR Calculator
How it works
CAGR (Compound Annual Growth Rate) smooths a bumpy investment into one steady yearly growth rate. Enter the beginning value, the ending value and the number of years — this calculator gives you the CAGR, the total growth percentage and the absolute gain.
CAGR Calculator
One honest yearly growth rate for any investment — no matter how bumpy the ride was.
1 Start and end values
2 Time period
3 Get your growth rate
📊 Your growth rate
How the math works
CAGR answers the question: “What steady yearly growth rate would turn the start value into the end value over this many years?” The formula is:
CAGR = (Ending value / Beginning value)^(1 / years) − 1
Total growth is simpler: (Ending − Beginning) / Beginning × 100. The absolute gain is just Ending − Beginning. A quick sanity check: money that doubles in 5 years has a CAGR of about 14.87%, no matter what path it took to get there.
Everyday uses
- Portfolio check-up: compare your IRA or brokerage growth against an index fund’s CAGR over the same years.
- Business revenue: founders and freelancers use CAGR to describe multi-year revenue growth in one number.
- Real estate: see the yearly appreciation rate of a property between purchase and sale prices.
Frequently asked questions
How is CAGR different from average annual return?
Average return adds up each year’s return and divides — it ignores compounding and can overstate growth. CAGR is the single rate that, compounded every year, exactly reproduces the start-to-end result, so it is the fairer comparison.
Can CAGR be negative?
Yes. If the ending value is lower than the beginning value, CAGR is negative — for example, $5,000 shrinking to $3,500 over 3 years is a CAGR of about −11.21% per year.
What if I added or withdrew money along the way?
Then start-to-end CAGR is misleading, because the ending value includes your deposits, not just growth. For accounts with regular contributions, a money-weighted measure like IRR (XIRR in a spreadsheet) is the better tool.