How to use the CAGR Calculator
- Enter the starting value.
- Enter the ending value.
- Enter the number of years between them.
What does this tool do?
CAGR smooths out the ups and downs of real growth into one average annual rate. It's used to compare investment returns, revenue growth, user growth or anything that compounds.
Unlike a simple average of yearly percentages, CAGR accounts for compounding, so it gives the rate that actually connects the two numbers.
Why use it?
- Compare investments held for different lengths of time.
- Report business growth fairly.
- See how long growth takes to double a value.
Example
An investment grows from $10,000 to $18,000 over 5 years. CAGR = (18,000 ÷ 10,000)^(1/5) − 1 = 12.47% a year. At that rate it doubles roughly every 5.9 years.
The formula
Privacy
The calculation happens instantly in your browser. The numbers you enter are not sent to our servers or saved. There's no account to create and nothing to install.
Frequently asked questions
Is CAGR the same as average return?
No. If an investment gains 50% one year and loses 50% the next, the average return is 0% but you've actually lost 25%. CAGR (−13.4% a year) reflects that.
Last reviewed by the M2Toolkit team.