Finance · Live
CAGR Calculator —
annualized growth, the honest way.
Find the compound annual growth rate of any investment from its start and end value — by a duration or between two dates — with total growth, absolute gain, and a year-by-year compounding chart.
Inputs
Your investment
- CAGR
- 20.11%
- Total growth
- 150%
- Time span
- 5 yr
Compound Annual Growth Rate
over 5 years
$10,000.00 grew to $25,000.00 — an annualized 20.11%.
Growth curve
Projected value at 20.11% / yr
Compounding schedule
Year-by-year growth
| Year | Value | Cumulative gain |
|---|---|---|
| 0 | $10,000.00 | $0.00 |
| 1 | $12,011.24 | $2,011.24 |
| 2 | $14,427.00 | $4,427.00 |
| 3 | $17,328.62 | $7,328.62 |
| 4 | $20,813.83 | $10,813.83 |
| 5 | $25,000.00 | $15,000.00 |
Field guide
How to calculate CAGR.
CAGR answers a simple question: if my investment had grown at one steady rate every year, what would that rate be? It turns a messy, volatile journey into a single comparable number.
Worked example. You invest $10,000 and it’s worth $25,000 after 5 years:
The total growth over the whole period is simply Ending ÷ Beginning − 1 = 150%, and the absolute gain is $15,000. CAGR compresses that 150% total into the equivalent steady annual rate.
CAGR vs. average annual return.
These two are often confused, and the difference matters. A simple average adds each year’s return and divides by the number of years. CAGR is a geometric mean that respects compounding.
Why the simple average misleads
Suppose an investment gains 50% one year and loses 50% the next. The simple average return is (50% − 50%) ÷ 2 = 0%. But $100 → $150 → $75: you’ve actually lost 25% over two years. CAGR captures this honestly:
Whenever returns vary, the simple average is equal to or higher than CAGR — never lower. That gap is why fund disclosures and serious comparisons quote CAGR (or “annualized return”), not the arithmetic mean.
How to interpret your CAGR.
- Compare to a benchmark. A 9% CAGR is strong against a savings account but unremarkable against a tech index over the same window. Context is everything.
- Mind the time frame. A high CAGR over 18 months can be luck; the same rate sustained over 10 years is a track record. Longer periods are more meaningful.
- It hides volatility. Two investments can share a CAGR while one was a smooth ride and the other a roller coaster. CAGR says nothing about the bumps in between.
- It ignores cash flows. If you added or withdrew money during the period, CAGR on the raw start/end values is misleading — use IRR instead.
Related calculators
To project forward instead of measuring the past, use the Compound Interest Calculator. For cash-flow-aware returns, see the IRR Calculator, and for a simple gain figure, the ROI Calculator.
Disclaimer: This CAGR calculator is provided for educational and informational purposes only and does not constitute financial, investment, or tax advice. Past growth does not guarantee future results. Always consult a qualified financial professional before making investment decisions.