What this calculator does
CAGR stands for compound annual growth rate. It expresses the average annual growth of an investment or business as a single smoothed rate.
This calculator shows CAGR, total return, capital multiple and absolute gain, making it easy to compare investments with different holding periods.
CAGR formula
CAGR = (ending value ÷ starting value)^(1 ÷ years) − 1 An investment growing from $10,000 to $25,000 over 10 years has a CAGR of about 9.6%. Actual annual returns can vary widely around that average.
How this calculator works
- 01
Enter start and end values
Use values without intermediate contributions for a clean result.
- 02
Set the time period
Enter the number of years over which the growth occurred.
- 03
Compare the rate
Compare CAGR with inflation, alternatives and your target.
Frequently asked questions
Is CAGR the same as actual return?
No. CAGR is a smoothed average. It does not capture volatility, fees, taxes or intermediate cash flows.
Can CAGR be negative?
Yes. If the ending value is below the starting value, CAGR is negative.
What if I contribute regularly?
CAGR assumes a single start and end value. With regular contributions, IRR or money-weighted return is more appropriate.
Data basis: 2026 · Annual constants live in structured JSON files and are updated once a year.
Results are unverified model calculations and do not replace tax, legal or financial advice.