Financial Calculators

CAGR Calculator

Compound annual growth rate (CAGR) is the steady yearly rate that would take a value from its starting point to its ending point. It smooths out the ups and downs, so you can compare investments or business growth fairly.

$
$
years
CAGR12.97%per year
Total growth
84%
Growth multiple
1.84×
Step-by-step working
  1. Ending ÷ beginning = 92,000 ÷ 50,000 = 1.84
  2. Raise to 1 ÷ 5 = 1.129701
  3. Subtract 1 and × 100 = 12.97%

How to use the CAGR Calculator

  1. Enter the starting value and ending value.
  2. Enter the number of years between them.
  3. Press Calculate.

Formula

CAGR = (Ending value ÷ Beginning value)1/n − 1

Examples

  • 50,000 → 92,000 in 5 years: (1.84)0.2 − 1 = 12.97% a year.

Frequently asked questions

Does CAGR show the actual yearly returns?

No. Actual returns may have been +30% one year and −10% the next. CAGR is the single smoothed rate with the same end result.