CAGR Calculator
What steady annual rate turns your start value into your end value?
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CAGR Calculator by TheCalcTools
How the CAGR Calculator works
Enter the start value, the end value and the number of years.
Take the ratio of end to start, raise it to 1 ÷ years and subtract 1.
The result is the steady annual rate that would give the same overall growth.
The formula
Worked example
Using the default values shown in the calculator:
| Beginning value | $10000 |
|---|---|
| Ending value | $18000 |
| Years | 5 |
- Growth ratio = 18,000 ÷ 10,000 = 1.8.
- CAGR = 1.8^(1/5) − 1 = 12.47%.
- Total growth is 80.0%.
Result:
| CAGR | 12.47% |
|---|---|
| Total growth | 80.0% |
| Absolute gain | $8,000 |
Frequently asked questions
Is CAGR the same as average return?
No. The arithmetic average of yearly returns overstates growth when returns vary. CAGR reflects what you actually earned.
What are its limits?
It smooths out volatility and ignores the path of returns and any contributions or withdrawals.
Sources and further reading
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This calculator gives estimates for information only. It is not financial advice, and your lender's or provider's figures will govern. Rates, fees and rules vary. See our disclaimer.