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CAGR Calculator

Calculate the compound annual growth rate between two values.
CAGR
13.99%
Total return
150.00%
Multiple
2.50×

Compound annual growth rate (CAGR) is the smoothed annual rate that takes a starting value to an ending value over a number of years. It's the standard way to compare the performance of investments over different time periods on an apples-to-apples basis.

Formula reviewed 2026-08-021 primary sourceMethodology and disclosures →

How this cagr calculator works

CAGR converts a total change between two values into one compounded annual rate, making investments held for different lengths of time easier to compare.

Formula

CAGR = (Ending value ÷ Starting value)1 ÷ years − 1

CAGR hides volatility and the path an investment took. Use it alongside drawdowns, fees, and cash-flow information.

Primary specifications

Before you use the result

Assumptions

  • • The starting value, ending value, and holding period are accurate.
  • • The result is a smoothed annual rate, not the return earned in any one year.
  • • Cash flows added or removed during the period are not modeled.

Quick start

  1. 1. Enter the value at the start of the period.
  2. 2. Enter the value at the end of the same period.
  3. 3. Use the exact number of years between the two values.

Frequently asked questions

What is CAGR?

CAGR is the constant annual rate at which an investment would have grown to reach its final value, assuming profits were reinvested each year. It's calculated as (End / Start)^(1/years) − 1.

How is CAGR different from average return?

A simple average ignores compounding and can overstate performance. CAGR reflects the actual compounded growth and is a more honest measure of long-term returns.

Does CAGR show investment risk?

No. CAGR smooths the entire path into one rate and does not reveal volatility, drawdowns, or the timing of returns.

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