CAGR Calculator

Convert total growth over a period into a smoothed compound annual growth rate.

Core formula

CAGR = (Ending Value / Beginning Value) ^ (1 / Years) - 1. It answers one question: if an asset grew at the same compound rate every year, what annual rate would move it from the beginning value to the ending value?

CAGR vs total return

Total return shows how much something grew over the full period. For example, moving from 100,000 to 180,000 is an 80% total gain. CAGR adds the time dimension and converts that gain into an annualized growth speed.

Inputs

  • Beginning value: the value at the start of the period.
  • Ending value: the value at the end of the period.
  • Years: the time between the two values.

Useful scenarios

CAGR is useful for comparing fund values, portfolios, revenue, user growth, or any metric that changes over multiple years. It is especially helpful when comparing periods of different lengths.

Limitations

CAGR is smoothed. It does not show drawdowns, volatility, or cash-flow changes. If money was added or withdrawn during the period, combine CAGR with a cash-flow-aware model.

Important limitation

This page and calculator are for estimation only and do not constitute investment advice. Historical CAGR does not imply future CAGR.