CAGR Calculator
Calculate Compound Annual Growth Rate (CAGR) from beginning value, ending value, and investment period. Free online CAGR calculator.
Formula: CAGR = (Ending ÷ Beginning)^(1/years) − 1
How to Use
Step-by-step guide to get the most from this tool
- 1
Enter beginning value
Input the initial investment or starting value.
- 2
Enter ending value
Input the final value after the investment period.
- 3
Set number of years
Enter the duration in years (decimals allowed for partial years).
- 4
Read CAGR result
See annualized growth rate and absolute return. Copy with one click.
Features
What makes this tool stand out
Standard formula
Accurate CAGR using the compound growth formula.
Absolute return
See total percentage gain alongside annualized rate.
Copy result
One-click copy of your CAGR percentage.
Private
All math runs locally in your browser.
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Frequently Asked Questions
Quick answers to common questions
What is CAGR?+
CAGR (Compound Annual Growth Rate) is the mean annual growth rate of an investment over a specified time period longer than one year. It smooths out volatility to show steady annual growth.
What is the CAGR formula?+
CAGR = (Ending Value ÷ Beginning Value)^(1 ÷ Number of Years) − 1, expressed as a percentage.
CAGR vs absolute return?+
Absolute return is total percentage gain without annualizing. CAGR spreads the gain evenly across years for comparison between different time periods.
When should I use CAGR?+
Use CAGR to compare investments over different periods, evaluate mutual fund performance, or measure business revenue growth on an annualized basis.
Does CAGR account for volatility?+
No. CAGR assumes steady growth and ignores year-to-year fluctuations. For volatile investments, also consider standard deviation and max drawdown.
Can CAGR be negative?+
Yes. If the ending value is less than the beginning value, CAGR is negative, indicating an annualized loss.
What is a good CAGR?+
For equity mutual funds, 12-15% CAGR over 10+ years is considered good. PPF offers ~7% risk-free. Context matters based on asset class and risk.
Is this calculator free?+
Yes. CAGR is calculated instantly in your browser with no data sent to servers.