CAGR Calculator
Find the compound annual growth rate between a beginning and ending value over a number of years, plus the total return and total gain.
Updated October 2026
CAGR is the single yearly rate that would turn the beginning value into the ending value over the period: (end ÷ begin)1/years − 1. It smooths out the ups and downs, so a volatile investment and a steady one with the same start, end and span show the same CAGR. Past performance doesn’t guarantee future returns.
This is an estimate for general information only and is not financial, tax or investment advice. Figures may differ from a lender or advisor.
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This CAGR calculator finds the compound annual growth rate — the single steady yearly rate that would grow a starting amount into an ending amount over a number of years. Enter the beginning value, the ending value and the time span, and it returns the CAGR, the total return over the whole period and the absolute gain.
CAGR is the standard way to compare investments, revenue or any value that compounds, because it strips out year-to-year volatility. A fund that zig-zags and a savings account that grows steadily will show the same CAGR if they start and end at the same values over the same period.
How to use it
- 1Enter the beginning value (your starting amount).
- 2Enter the ending value (what it grew to).
- 3Enter the number of years between the two.
- 4Read the CAGR per year, the total return over the period and the total gain.
Frequently asked questions
How is CAGR calculated?+
CAGR = (ending value ÷ beginning value) raised to the power of (1 ÷ years), minus 1. For example, growing $1,000 to $2,600 over 5 years is (2.6)^(1/5) − 1 ≈ 21.1% a year.
What is the difference between CAGR and total return?+
Total return is the overall percentage change from start to finish, while CAGR expresses that growth as a smooth yearly rate. Growing from $1,000 to $2,600 is a 160% total return but a 21.1% CAGR over 5 years.
What is the difference between CAGR and average annual return?+
A simple average of yearly returns ignores compounding and overstates growth when returns vary. CAGR accounts for compounding, so it reflects the actual rate your money grew. For volatile returns, CAGR is always lower than or equal to the simple average.
Can CAGR be negative?+
Yes. If the ending value is lower than the beginning value, the CAGR is negative, showing the steady annual rate of decline. For example, $1,000 falling to $500 over 4 years is about −15.9% a year.
What are the limitations of CAGR?+
CAGR assumes smooth growth and only looks at the first and last values, so it hides volatility and any deposits or withdrawals in between. It's a clean comparison tool, not a complete picture of risk or cash flow.
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