CAGR Calculator
Calculate the Compound Annual Growth Rate (CAGR) to measure the mean annual growth rate of an investment over a specified period longer than one year. Essential for comparing investment performance.
This free online cagr calculator provides instant results with no signup required. All calculations run directly in your browser — your data is never sent to a server. Enter your values below and see results update in real time as you type. Perfect for everyday calculations, homework, or professional use.
The initial value of the investment.
The final value of the investment.
The investment period in years.
How to Use This Calculator
Enter your input values
Fill in all required input fields for the CAGR Calculator. Most fields include unit selectors so you can work in your preferred unit system — metric or imperial, whichever matches your problem.
Review your inputs
Double-check that all values are correct and that you have selected the right units for each field. Incorrect units are the most common source of calculation errors and can produce results that are off by factors of 2, 10, or more.
Read the results
The CAGR Calculator instantly computes the output and displays results with units clearly labeled. All calculations happen in your browser — no loading time and no data sent to a server.
Explore parameter sensitivity
Try adjusting individual input values to see how the output changes. This is a quick and effective way to develop intuition about how different parameters influence the result and to identify which inputs have the largest effect.
Formula Reference
CAGR Calculator Formula
See calculator inputs for the governing equation
Variables: All variables and their units are labeled in the calculator interface above. Input fields accept values in multiple unit systems — select your preferred unit from the dropdown next to each field.
When to Use This Calculator
- •Use the CAGR Calculator when comparing financial options side-by-side — such as different loan terms or investment returns — to make more informed decisions.
- •Use it to quickly estimate costs or returns before making purchasing, investment, or borrowing decisions.
- •Use it for financial education and planning to understand how compound interest, fees, or tax affects the real value of money over time.
- •Use it when building or reviewing a budget to verify that projections and calculations are mathematically correct.
About This Calculator
The CAGR Calculator is a free financial calculation tool designed to help individuals and businesses understand key financial concepts and estimate costs, returns, and loan parameters. Calculate the Compound Annual Growth Rate (CAGR) to measure the mean annual growth rate of an investment over a specified period longer than one year. Essential for comparing investment performance. The calculations are based on standard financial mathematics formulas. Results are for informational and educational purposes only and should not be considered financial, investment, or tax advice. Consult a qualified financial professional before making financial decisions. All calculations are performed in your browser — no personal financial data is stored or transmitted.
About CAGR Calculator
The Compound Annual Growth Rate (CAGR) calculator determines the smoothed annual rate of return an investment would have earned if it had grown at a steady rate. Unlike simple average returns, CAGR accounts for compounding and provides a single number that represents the geometric progression ratio. It is the standard metric used by investors, analysts, and portfolio managers to compare the performance of different investments, funds, or business metrics over time. CAGR is especially useful when the actual year-over-year growth is volatile, as it strips out the noise and shows the effective annual rate. It is also commonly applied to revenue growth, user growth, and market expansion metrics in business contexts.
The Math Behind It
Formula Reference
CAGR Formula
CAGR = (Ending Value / Beginning Value)^(1/n) - 1
Variables: n = number of years
Worked Examples
Example 1: Stock portfolio growth
An investment grows from $10,000 to $19,500 over 5 years.
The CAGR is 14.31% per year.
Example 2: Company revenue growth
Revenue grew from $2M to $5M over 8 years.
The revenue CAGR is 12.14% per year.
Common Mistakes & Tips
- !Confusing CAGR with the simple average of annual returns, which overstates growth when volatility is present.
- !Using CAGR to predict future performance; past CAGR does not guarantee future results.
- !Applying CAGR to periods with significant cash inflows or outflows, where IRR should be used instead.
Related Concepts
Used in These Calculators
Calculators that build on or apply the concepts from this page:
Frequently Asked Questions
How is CAGR different from average annual return?
CAGR uses geometric compounding and accounts for the effect of gains on subsequent gains. The arithmetic average simply sums annual returns and divides by the number of years, which can overstate growth when returns are volatile.
Can CAGR be negative?
Yes, if the ending value is less than the beginning value, the CAGR will be negative, indicating the investment lost value over the period.
Is CAGR the same as IRR?
Only when there are no intermediate cash flows. If you make additional investments or withdrawals during the period, IRR accounts for their timing while CAGR does not.