CAGR Calculator
Compound annual growth rate (CAGR) measures the average yearly growth of an investment over multiple years. Enter your beginning value, ending value, and number of years. The calculator shows the CAGR that represents consistent year-over-year growth, plus a verification table showing the value at each year at the calculated CAGR rate.
CAGR formula
CAGR = (Ending Value / Beginning Value) ^ (1 / Number of Years) - 1
The result is expressed as a decimal; multiply by 100 for a percentage.
How to use this calculator
- Enter your starting investment value in "Beginning value".
- Enter the final investment value in "Ending value".
- Enter the number of years from start to end in "Number of years".
- The calculator shows the CAGR as an annual percentage growth rate.
CAGR verification
Your CAGR is the constant growth rate that, if applied each year, would grow the beginning value to the ending value. Check: 10000 × (1 + 0.2011)^5 = 25000.
CAGR calculator: frequently asked questions
What is CAGR?
Compound annual growth rate (CAGR) is the average annual return on an investment over multiple years. It shows what the investment must grow at each year to reach the final value.
How is CAGR calculated?
CAGR = (Ending Value / Beginning Value) ^ (1 / Number of Years) - 1. It assumes constant growth each year.
Is CAGR the same as average annual return?
No. Average annual return is the simple mean of yearly returns. CAGR is the compound rate and accounts for growth of growth.
When should I use CAGR?
Use CAGR to compare investment performance over long periods, especially when returns vary year to year. It smooths volatility into a single growth rate.
What if CAGR is negative?
Negative CAGR means the investment declined in value over the period. The more negative, the steeper the decline.
Official sources
- U.S. Securities and Exchange Commission: Investor Education.
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.