Compound Annual Growth Rate (CAGR) Calculator
Calculate the compound annual growth rate of an investment from its starting value, ending value and number of years held.
Your results
Calculation breakdown
- CAGR
- ((ending value ÷ starting value) ^ (1 ÷ years) − 1) × 100
Worked example
An investment grows from $20,000 to $35,000 over 5 years. The CAGR is about 11.84% per year, the steady annual rate that would produce the same total growth.
Assumptions
- Requires a positive starting and ending value; does not model a total loss.
- Does not include dividends unless you add them to the ending value.
- Historical growth is not a guarantee of future performance.
How this calculator works
CAGR smooths an investment's growth into a single annualised percentage, making it easier to compare returns across different assets or holding periods. Enter the starting value, ending value and number of years to see the equivalent constant annual growth rate.
Frequently asked questions
How is CAGR different from average annual return?
CAGR accounts for compounding and gives the single steady rate that would produce the same result, while a simple average can overstate volatile returns.
Can I use CAGR for a loss?
Yes, a negative CAGR shows the annualised rate of decline, provided the ending value is still above zero.
Does CAGR include dividends?
Only if you include dividends received in your ending value figure; otherwise it measures capital growth alone.
Results are estimates only and are not financial, tax, legal or credit advice.