CAGR Calculator
Calculate the compound annual growth rate between any two values.
What $10,000 Becomes at Different Growth Rates
| CAGR | Future Value | Total Gain |
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This calculator finds the compound annual growth rate between any two values over a given time period. Here is how to use it:
- Enter the beginning value. This is the starting amount of your investment, revenue, or any metric you want to measure. For example, if you invested $10,000 five years ago, enter 10000.
- Enter the ending value. This is the current or final value. If your investment is now worth $25,000, enter 25000.
- Enter the number of years. This is the total time period between the beginning and ending values. The calculator accepts whole numbers and decimals.
The result updates instantly as you type. The CAGR tells you the steady annual growth rate that would take you from the beginning value to the ending value over that time period. Use the Share button to send a pre-filled link, or Copy to grab the result.
About CAGR
CAGR stands for Compound Annual Growth Rate. It measures the mean annual growth rate of an investment (or any value) over a specified period longer than one year. Unlike simple average returns, CAGR accounts for the effect of compounding, giving you the smoothed annual rate as if the investment had grown at a steady pace each year.
CAGR is widely used to compare investment performance, evaluate business growth, and benchmark returns across different time periods. The formula is: CAGR = (Ending Value / Beginning Value)^(1/Years) - 1. All calculations run entirely in your browser. No data is sent anywhere.
Frequently Asked Questions
What is CAGR?
CAGR (Compound Annual Growth Rate) is the annual rate of return that an investment would need to grow from its beginning value to its ending value, assuming profits were reinvested each year. It smooths out volatility and gives you a single number that represents consistent yearly growth over the entire period.
How is CAGR different from average return?
Average return is a simple arithmetic mean of yearly returns, which ignores compounding. CAGR accounts for compounding and gives the geometric mean return. For example, if an investment goes up 100% one year and down 50% the next, the average return is 25%, but the CAGR is 0% because you end up where you started. CAGR is more accurate for measuring actual investment performance.
What is a good CAGR?
It depends on the context. The S&P 500 has historically delivered a CAGR of about 10% before inflation (roughly 7% after inflation). For individual stocks, a CAGR above 15% is generally considered strong. For business revenue, anything above 20% annually is often seen as high growth. A "good" CAGR depends on your asset class, risk level, and the time period being measured.
Can CAGR be negative?
Yes. A negative CAGR means the investment lost value over the measured period. For example, if $10,000 declined to $7,000 over 3 years, the CAGR would be approximately -11.2%. A negative CAGR tells you the annualized rate of decline, which is useful for understanding how quickly value was lost.