CAGR Calculator (Compound Annual Growth Rate)
Calculate the compound annual growth rate (CAGR) of an investment along with its total growth and total gain. Enter the beginning value, ending value, and number of years to see the annualized return.
Formula
CAGR = (Ending / Beginning)^(1/years) − 1
- CAGR is the constant yearly rate that grows the beginning value into the ending value over the period.
- CAGR = (ending ÷ beginning)^(1 ÷ years) − 1, expressed as a percentage.
- Total growth is the simple percentage change from start to end, ignoring compounding.
- Total gain is the raw difference between the ending and beginning values.
- CAGR smooths volatility, so it won't show the year-to-year swings in between.
100,000 grows to 250,000 in 5 years
Inputs
- Beginning Value: 100000
- Ending Value: 250000
- Number of Years: 5 years
(250,000 ÷ 100,000)^(1/5) − 1 ≈ 0.201, a CAGR of about 20.1%, with 150% total growth and a 150,000 gain.
Frequently asked questions
What is CAGR?
Compound annual growth rate is the smoothed annual rate at which an investment grows from its start value to its end value.
How does CAGR differ from total growth?
Total growth is the overall percentage change; CAGR converts that into a per-year compounded rate.
What's a strong CAGR?
It depends on the asset and risk taken. Broad equity markets have historically returned around 7–10% a year before inflation.
Does CAGR account for deposits?
No. It assumes a single lump sum. For regular contributions, use an investment or SIP calculator instead.
Can CAGR be negative?
Yes. If the ending value is lower than the beginning value, the CAGR is negative, indicating an average annual loss.
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