CAGR Calculator

Use our free CAGR calculator to determine the compound annual growth rate of your investment. Enter the beginning value, ending value, and time period to see the annualized rate of return.

Financial

Currency

Beginning Value

Ending Value

Time Period (years)

years

Formula

The compound annual growth rate (CAGR) is the mean annual growth rate of an investment over a specified period longer than one year. It represents one of the most accurate ways to calculate and determine returns for anything that can rise or fall in value over time.

CAGR = (EV/BV)^(1/t) - 1

Percentage: The percentage value you want to apply

Number: The original number or value

Result: The calculated result

How It Works

1Enter the beginning value of your investment.
2Enter the ending value after the holding period.
3Enter the time period in years.
4The calculator computes the annualized growth rate.

Examples

$10,000 to $20,000 over 3 years

1.CAGR = (20000/10000)^(1/3) - 1
2.CAGR = 2^(0.3333) - 1
3.CAGR = 25.99%

Result: 25.99%

Frequently Asked Questions

CAGR (Compound Annual Growth Rate) is the rate of return that would be required for an investment to grow from its beginning balance to its ending balance, assuming profits were reinvested over the period.

CAGR shows the annualized rate that smooths out volatility, while simple growth rate just shows the total percentage change without annualizing.

Yes, if the ending value is less than the beginning value, CAGR will be negative, indicating a loss on an annualized basis.

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Understanding CAGR

CalculateMe Team

Last updated: 2026-07-15

Frequently Asked Questions

CAGR shows the annualized rate that smooths out volatility, while simple growth rate just shows the total percentage change without annualizing.

Yes, if the ending value is less than the beginning value, CAGR will be negative, indicating a loss on an annualized basis.

CAGR Calculator

Formula

How It Works

Examples

$10,000 to $20,000 over 3 years

Frequently Asked Questions

What is CAGR?

How is CAGR different from simple growth rate?

Can CAGR be negative?

Related Calculators

Related Articles

CAGR Calculator

Formula

How It Works

Examples

$10,000 to $20,000 over 3 years

Frequently Asked Questions

What is CAGR?

How is CAGR different from simple growth rate?

Can CAGR be negative?

Related Calculators

Related Articles