Boneyard Tools

CAGR Calculator

Find the compound annual growth rate (CAGR) of an investment. Enter the value at the start, the value at the end and how many years passed to see the smoothed yearly return, total growth and how many times your money multiplied.

How to use the CAGR calculator

  1. Enter the beginning value of the investment.
  2. Enter the ending value and the number of years between the two.
  3. Read off the CAGR, total growth and growth multiple.

Examples

An investment that doubles in 10 years

Begin 1000, end 2000, 10 years
CAGR 7.18 percent, total growth 100 percent, 2x

Frequently asked questions

What is CAGR?

CAGR, or compound annual growth rate, is the constant yearly rate that would take your beginning value to your ending value over the period. It smooths out the ups and downs into a single annual figure.

What is the CAGR formula?

CAGR = (ending value / beginning value) ^ (1 / years) minus 1, expressed as a percentage. For example, doubling money in 10 years is (2) ^ (1/10) minus 1, which is about 7.18 percent.

How is CAGR different from absolute return?

Absolute return is the total percentage change over the whole period and ignores time. CAGR converts that total into a per-year rate, so a 100 percent gain over 10 years is only about 7.18 percent CAGR.

How is CAGR different from average annual return?

An average return is the simple mean of each year's return and can overstate growth because it ignores compounding. CAGR is a geometric average, so it reflects the actual compounded result and is usually lower.

Can CAGR be negative?

Yes. If the ending value is lower than the beginning value, CAGR is negative, showing the average yearly rate of decline over the period.

Does this calculator store my numbers?

No. The calculation runs entirely in your browser, so the values you enter never leave your device.

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