CAGR Calculator
Compute the compound annual growth rate between a beginning value and an ending value.
CAGR smooths bumpy, volatile returns into one clean yearly number. Enter any start value, end value, and number of years to get the constant annual growth rate that connects them — the standard way investors and funds compare performance across different time periods.
How to use this calculator
- Enter the beginning value of the investment.
- Enter the ending value.
- Enter the number of years between the two values (fractions like 2.5 are fine).
- Click Calculate to see the CAGR, total growth, and estimated doubling time.
The formula
CAGR = (Ending Value / Beginning Value)^(1/years) − 1
Worked example
$10,000 growing to $20,000 over 10 years is a 7.18% compound annual growth rate — the classic 'double your money in 10 years' case.
Frequently Asked Questions
What is CAGR?
The compound annual growth rate is the constant yearly rate at which an investment would have had to grow to go from its beginning value to its ending value. It answers: 'if growth had been perfectly smooth, what would the yearly rate have been?' An investment doubling from $10,000 to $20,000 in 10 years has a 7.18% CAGR.
How is CAGR different from average annual return?
A simple average of yearly returns overstates growth when returns are volatile, because it ignores compounding. CAGR is the geometric mean — it accounts for compounding and for down years. For comparing investments or fund performance, CAGR is the honest number.
Can CAGR be negative?
Yes. When the ending value is lower than the beginning value, CAGR is negative — for example, an investment falling from $10,000 to $8,000 over 2 years has a CAGR of about −10.56%. A total loss (ending value of zero) is exactly −100%.
Does CAGR account for deposits and withdrawals?
No. CAGR assumes a single lump sum growing untouched for the whole period. If you added or withdrew money along the way, use the Investment ROI Calculator's annualized return instead, which handles contributions — or a full XIRR calculation for irregular cash flows.
Why does the calculator show a doubling time?
It's the rule-of-72 estimate: 72 divided by the CAGR percentage approximates how many years it takes money to double at that rate. At 7.18% CAGR, money doubles roughly every 10 years — a quick sanity check that the growth rate feels right.