CAGR Calculator
Annual growth that is comparable.
CAGR Calculator
CAGR = (EV/BV)^(1/n) - 1
Calculated instantly
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What This Calculator Does
The CAGR Calculator computes the Compound Annual Growth Rate, smoothing volatile returns into a single annual figure. Investors use CAGR to compare investments with different time horizons on equal footing.
How It Works
CAGR equals the ending value divided by the beginning value, raised to the power of 1/years, minus 1.
Example
An investment grows from $10,000 to $18,000 in 5 years. CAGR = (18000/10000)^(1/5) - 1 = 12.47%.
Formula
CAGR = (EV/BV)^(1/n) - 1Reading the Results
CAGR
The annualized rate of return over this period.
Frequently Asked Questions
What is CAGR?
Compound Annual Growth Rate. It smooths returns into a single annual percentage for comparison.
Is CAGR the same as average return?
No. CAGR accounts for compounding. Average return does not.
Can CAGR be negative?
Yes. If your investment lost value, CAGR shows the annual rate of decline.