CAGR Calculator

Calculate compound annual growth rate from beginning and ending values over a specified time period.

How to Use CAGR Calculator

1

Enter starting value

Type the initial investment or beginning value.
2

Enter ending value

Type the final value after the investment period.
3

Set the time period

Enter the number of years for the growth calculation.
4

View the CAGR

See the compound annual growth rate as a percentage.

Tested tool guide Tested browser tools Checked August 16, 2026

What CAGR Calculator does, with a checked example

CAGR expresses the change from a beginning value to an ending value as one constant annual growth rate. Enter both values and the number of years between them; the calculator solves for the rate that would compound the beginning value into the ending value. The result describes the endpoints, not what happened during each intervening year. A common mistake is treating CAGR as an average of yearly returns, even though it ignores fluctuations and the order of gains and losses.

Worked example

A concrete input and expected output from the current implementation.

Input

Beginning value: 1000
Ending value: 1210
Time period: 2 years

Expected output

CAGR: 10% per year

The calculation is (1210 / 1000)^(1 / 2) - 1 = 0.10. Checking the result, 1000 multiplied by 1.10 twice equals 1210.

How the result is produced

Annualized rate formula

For positive beginning and ending values, CAGR equals (ending value / beginning value)^(1 / years) - 1. The calculator converts that decimal rate to a percentage. The exponent spreads the total proportional change across the entered duration using annual compounding. For the same two endpoint values, a longer period moves the annualized rate closer to zero.

Endpoint interpretation

CAGR solves for a hypothetical constant rate connecting the first and last values. It does not average the annual percentage changes observed along the way. If the result is 10%, the endpoint relationship is equivalent to multiplying the beginning value by 1.10 once per year for the stated number of years, regardless of the actual path.

Good uses

Annualizing revenue growth between two fiscal-year totals.
Comparing the endpoint growth rates of investments held for different lengths of time.
Finding the constant yearly growth needed for a current value to reach a future target.

Limits and checks

CAGR hides volatility, reversals, and unusually strong or weak individual years between the endpoints.
Deposits, withdrawals, acquisitions, distributions, or other external cash flows can make the calculated rate misleading.
The period must be the elapsed number of years, not simply the number of annual values or labels in a data series.

Common questions

Can the calculator return a negative CAGR?

Yes. With positive endpoint values, an ending value below the beginning value produces a negative CAGR, representing a constant annualized decline. A zero beginning value does not produce a meaningful CAGR because the formula requires division by the beginning value. Negative endpoint values also do not have a generally useful CAGR interpretation.

Does CAGR account for deposits, withdrawals, dividends, or inflation?

No. The calculation uses only the beginning value, ending value, and elapsed time. Reinvested dividends can be reflected if they are already included in a total-return ending value, but separate cash flows require a money-weighted return calculation such as IRR. Inflation must also be adjusted separately when a real growth rate is needed.

References and verification

The example and behavioral notes were checked against the browser implementation. Standards and primary references below define the relevant format, formula, or platform behavior.