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CAGR Calculator

Find the steady yearly growth rate that would take a starting value to an ending value over a given period.

How it works

Divide the ending value by the beginning value to get the growth multiple.

Raise it to the power of 1 ÷ years and subtract 1 to get the annualized rate.

The chart shows a smooth illustrative path at that rate.

Formula & methodology

CAGR = (Ending ÷ Beginning)^(1 ÷ Years) − 1

Total growth = Ending ÷ Beginning − 1.

CAGR ignores the timing of deposits or withdrawals.

Illustrative example

$10,000 growing to $18,000 in 5 years

The growth multiple is 1.8×, or 80% total growth.

CAGR = 1.8^(1/5) − 1 ≈ 12.47% per year.

Hypothetical figures for illustration only.

Frequently asked questions

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