What is the CAGR Calculator?
Find the compound annual growth rate (CAGR) between a starting and ending value. CAGR smooths an uneven journey into a single yearly rate, which makes it the fairest way to compare investments or business growth over different time spans.
How to use the CAGR Calculator
- Enter your beginning value, your ending value, your number of years.
- Results update automatically as you type; you can also press Calculate.
- Read the output: cagr, total growth.
- Use the 📊 chart to see the result visually, then copy or share it.
Formula and method
Worked example
With beginning value = $10,000, ending value = $19,000, number of years = 5, the CAGR Calculator returns cagr: 13.70%; total growth: 90.00%.
Where the CAGR Calculator helps in real life
Your portfolio went from $10,000 to $16,000 over four years with a bad year in the middle. CAGR tells you the steady annual rate that would have produced the same result, so you can compare it with an index fund.
You are pitching a business plan and revenue grew from $120k to $310k in three years. Quoting CAGR instead of total growth gives investors a figure they can compare across companies.
Common mistakes to avoid
- Using CAGR to describe volatility — it hides the ups and downs completely.
- Mixing up total growth with annual growth.
- Using a period that is not a whole number of years without adjusting the input.
- Ignoring deposits and withdrawals made during the period, which distort the result.
💡 Practical tip: If start or end values are near zero or negative, CAGR becomes meaningless — compare absolute changes instead.
Tips for better results
- Pair CAGR with the worst single year to understand risk.
- Use the same start and end dates when comparing two investments.
- For accounts with regular contributions, use an investment or IRR calculator instead.
⚠️ These results are for educational purposes and are not financial advice. Confirm figures with your lender or a licensed financial professional before making decisions.
Frequently asked questions
What does the CAGR Calculator do?
Find the compound annual growth rate (CAGR) between a starting and ending value.
How is it calculated?
The CAGR Calculator uses this method: CAGR = (End ÷ Start)^(1/years) − 1.
Can you show an example?
With beginning value = $10,000, ending value = $19,000, number of years = 5, the CAGR Calculator returns cagr: 13.70%; total growth: 90.00%.
Is the CAGR Calculator accurate?
It uses standard published formulas and is tested against known values, but results are estimates for guidance. These results are for educational purposes and are not financial advice. Confirm figures with your lender or a licensed financial professional before making decisions.
Is this tool free and private?
Yes — the CAGR Calculator is completely free with no sign-up, and it runs entirely in your browser, so the values you enter are never uploaded to our servers.
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