CAGR Calculator — How to Calculate Compound Annual Growth Rate
Calculate CAGR from beginning value, ending value, and years. Example: 10,000 → 16,105.10 over 5 years → about 10.00%. Runs in your browser; educational illustration only — not investment advice.
How it works
Enter a positive beginning value, ending value, and years. The tool computes CAGR % with the standard compound annual growth rate formula. Zero or negative inputs are rejected. Results stay in your browser and are educational only.
Formula and assumptions
CAGR = ((Ending value ÷ Beginning value)^(1 ÷ Years) − 1) × 100. Keep these assumptions in mind:
- Compounding is treated as once per year; intra-year timing is ignored.
- No mid-period deposits or withdrawals — only beginning, ending, and years.
- Results are educational illustrations, not forecasts or investment advice.
Example
Example: beginning 10,000, ending 16,105.10, years 5 → CAGR = ((16105.10 / 10000)^(1/5) − 1) × 100 ≈ 10.00%.
When to use it
- Compare multi-year investment or revenue growth on an annualized basis (illustration only).
- Coursework: practice the CAGR percentage with fixed beginning, ending, and years.
- Rough annualized return sketch before talking to an advisor — not a substitute for full analysis.
Frequently asked questions
What CAGR formula does this use?
CAGR = ((Ending value ÷ Beginning value)^(1 ÷ Years) − 1) × 100. Beginning, ending, and years must all be greater than zero.
How is CAGR different from simple ROI?
Simple ROI is a single-period percentage and ignores how many years the change took. CAGR annualizes growth across the years you enter.
What if beginning or ending value is zero or negative?
The calculator requires both values to be greater than zero. Zero or negative inputs make the standard CAGR formula undefined or misleading for this tool.
Is this investment advice?
No. Numbers are educational illustrations only and are not investment, tax, or financial advice. Past or hypothetical growth does not guarantee future results.
Important notice
CAGR results are educational illustrations only and are not investment, tax, or financial advice. Past or hypothetical returns do not guarantee future results. Real portfolios face fees, taxes, cash flows, and risk this page does not model.
References: Investopedia CAGR definition and formula guides; standard ((EV/BV)^(1/n) − 1) annualized growth rate.
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Questions or feedback
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