CAGR Calculator
Work out the compound annual growth rate between a starting and ending value.
Last reviewed July 1, 2026
CAGR is the steady yearly rate that would grow your starting value to the ending value — a clean way to compare returns across different periods.
CAGR — compound annual growth rate — is the smooth, steady yearly rate that would take a starting value to an ending value over a set number of years. It strips out the bumps of real life to give one clean growth figure, which is why investors and analysts rely on it.
Enter your beginning value, ending value, and the number of years to get the CAGR, along with the total growth over the whole period.
How CAGR is calculated
The formula is CAGR = (ending ÷ beginning)^(1 ÷ years) − 1. Because it compounds, CAGR is almost always lower than the simple average of yearly returns — and more honest, since it reflects the actual start-to-finish result.
Use it to compare investments, revenue growth, user numbers, or any metric that grows over multiple years.
Frequently asked questions
▶What's the difference between CAGR and average return?
A simple average adds up yearly returns and divides. CAGR compounds them, accounting for the fact that gains build on gains, so it better reflects real, start-to-finish performance.
▶Can CAGR be negative?
Yes. If the ending value is lower than the starting value, CAGR is negative, showing an average annual decline over the period.
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Open calculator →Disclaimer: CAGR Calculator results are estimates for general information and education only, and are not financial, tax, legal or medical advice. Verify important decisions with a qualified professional.