Financial calculator
CAGR Calculator
Enter a starting value, an ending value, and the number of years to get the compound annual growth rate (CAGR) — the single annual rate that turns the start into the end.
How to use this calculator
For example, $10,000 growing to $16,000 over 5 years is about a 9.86% CAGR. Enter your own figures; the result is arithmetic based only on the values you type.
Inputs are editable, results update locally in the browser, and outputs are informational estimates based only on the assumptions entered.
What CAGR is
Compound annual growth rate (CAGR) is the constant yearly rate that would take a starting value to an ending value over a set number of years, as if it grew smoothly. The formula is (ending / starting) raised to the power of 1/years, minus 1.
It is the standard way to compare growth across investments and time periods because it folds the ups and downs into one annual number.
CAGR vs average return
A simple average of yearly returns overstates real growth because it ignores compounding and volatility. CAGR reflects what you actually ended with, so it is usually lower than the arithmetic average — and more honest.
CAGR describes the past values you enter; it is not a prediction of future returns.
Data notice: Market data may be delayed, incomplete, or unavailable for some securities. Metrics are provided for informational purposes only.
Last updated:
Calculator notes
- The calculator runs in the browser and keeps the assumptions visible to the reader.
- Inputs are transparent and editable, which makes the assumptions visible to the reader.
- Results are estimates for informational purposes and can be compared with stock and ETF research pages.
Financial disclaimer
This website provides informational content only and is not financial advice. We do not recommend buying or selling securities. Market data may be delayed, incomplete, or inaccurate. Always verify information with official sources before making financial decisions.
FAQ
How do I calculate CAGR?
Divide the ending value by the starting value, raise it to the power of 1 divided by the number of years, and subtract 1. This calculator does that for the figures you enter.
What is the difference between CAGR and average return?
Average return is the simple mean of yearly returns; CAGR accounts for compounding, so it reflects the actual start-to-end growth and is usually lower than the average.
Does CAGR predict future returns?
No. CAGR summarizes the historical values you enter — it is not a forecast.