CAGR Calculator
Compute the compound annual growth rate (CAGR) from a beginning value, ending value, and number of years — the constant annual rate that connects the two.
Calculator
Formula
- CAGR = (Ending ÷ Beginning) ^ (1 ÷ Years) − 1
How it works
CAGR is the single constant annual growth rate that would take a beginning value to an ending value over a given number of years. It smooths away the path taken and reports the equivalent steady rate.
It is useful for comparing results over different time horizons on a like-for-like annualized basis. Because it ignores volatility and the order of returns, it should be read alongside drawdown and other risk metrics, not in isolation.
CAGR is a descriptive statistic about past values you enter. It is not a forecast and not a claim that any rate will continue.
Example use cases
Doubling in one year
100 → 200 over 1 year is a CAGR of 100%.
4× over two years
100 → 400 over 2 years is a CAGR of 100% per year.
Frequently asked questions
How is CAGR different from average annual return?+
A simple average can overstate growth because it ignores compounding. CAGR is the geometric mean, reflecting how gains and losses compound on each other, so it is generally the more honest single-number summary.
Can CAGR be negative?+
Yes. If the ending value is below the beginning value, CAGR is negative, describing a compound annual decline.