CAGR Calculator

Last updated: May 9, 2026

Compound annual growth rate of an investment.

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CAGR Calculator is a free online calculator to compound annual growth rate of an investment. It runs entirely in your browser, so your files never leave your device — nothing is uploaded. There's no sign-up, no watermark, and it works on any modern browser on desktop or mobile.

How to use CAGR Calculator

This CAGR calculator finds the compound annual growth rate that takes an investment from a beginning value to an ending value over a set number of years, using CAGR = (ending divided by beginning)^(1 divided by years) minus 1. It expresses uneven growth as one smooth yearly rate, making different investments easy to compare. Investors and analysts use it to gauge performance over time.

Read the full guide: How to Calculate CAGR: Formula and Worked Examples

  1. 1Enter the initial value of the investment.
  2. 2Enter the final value and the number of years held.
  3. 3Read the compound annual growth rate shown as a percentage.

Fair comparison

Turns total returns into an annualized rate so different holdings line up side by side.

Smooths volatility

Reports one steady yearly figure regardless of how bumpy the actual path was.

Simple inputs

Only the start value, end value and years are needed to get the answer.

CAGR Calculator — frequently asked questions

What is the CAGR formula?

CAGR equals (ending value / beginning value) raised to the power of (1 / number of years), minus 1, expressed as a percentage. It is the constant rate that would compound the starting amount into the ending amount over the period.

How is CAGR different from average annual return?

A simple average just adds yearly returns and divides them, ignoring compounding. CAGR accounts for compounding and reflects the true geometric growth rate, so it is usually lower than a simple average when returns fluctuate.

Can CAGR be negative?

Yes. If the ending value is lower than the beginning value, the rate is negative, showing an annualized loss. The formula still applies the same way.

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