CAGR Calculator

Finance

Last updated: July 11, 2026

Calculate the Compound Annual Growth Rate of an investment over any time period. Compare investment performance and project future values.

Beginning Value ($)

Ending Value ($)

Time Period (years)

How to Use This Calculator

Enter the Beginning Value (initial investment amount).
Enter the Ending Value (current or final value).
Enter the Time Period in years.
Click Calculate CAGR to see the annualized growth rate, total growth, and future value projections.

Formula

CAGR = (EV / BV)^1/n − 1

Where EV = Ending Value, BV = Beginning Value, n = Number of years. CAGR represents the constant annual growth rate needed to grow from the beginning value to the ending value.

Examples

Investment Growth: $10,000 grew to $20,000 in 5 years. CAGR = 14.87%. The investment doubled at an annualized rate of nearly 15%.

Company Revenue: Revenue grew from $1M to $3M in 3 years. CAGR = 44.22%. Tripled revenue in just 3 years.

Index Fund: $50,000 grew to $85,000 in 10 years. CAGR = 5.45%. A steady long-term return typical of diversified equity funds.

Frequently Asked Questions

What is the difference between CAGR and simple average return?

CAGR accounts for compounding and smooths out volatility, giving the constant annual growth rate needed to go from start to end value. Simple average ignores compounding.

Can CAGR be negative?

Yes. If the ending value is less than the beginning value, CAGR will be negative, indicating a loss over the period.

Is CAGR the same as IRR?

No. IRR (Internal Rate of Return) accounts for multiple cash flows over time. CAGR assumes a single initial investment and final value.

What is a good CAGR?

The S&P 500 has historically returned about 7–10% CAGR (before inflation). Higher returns typically involve higher risk.