Compound Annual Growth Rate Calculator

About this calculator

The compound annual growth rate (CAGR) smooths an investment's growth over multiple years into a single steady annual rate, calculated as CAGR = (Ending Value / Beginning Value)^(1/n) − 1, where n is the number of years. Unlike a simple average of yearly returns, CAGR accounts for compounding, so it correctly represents "the constant annual rate that would take you from the start value to the end value," even though actual year-to-year returns fluctuated.

Investors, financial analysts, and business owners use CAGR to compare the performance of investments, funds, or revenue growth over different time periods on an apples-to-apples basis — a stock that grew 8% a year for 10 years and one that was volatile but ended at the same final value both report the same CAGR, even though the ride was very different. Enter the starting value, ending value, and number of years to find the CAGR.