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CAGR Calculator

Calculate the compound annual growth rate (CAGR) — the smooth yearly rate that takes a starting value to an ending value over a period. It's the right way to compare investment returns across different time spans.

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Frequently asked questions

What is CAGR?

The compound annual growth rate (CAGR) is the constant yearly rate at which a value would have grown from its starting amount to its ending amount over a period, as if it compounded smoothly each year.

How is CAGR different from average annual return?

A simple average can be misleading because it ignores compounding and the order of returns. CAGR captures the true compounded growth, so it is the right figure for comparing investments over multiple years.

How do I calculate CAGR in Excel?

Use =(ending/beginning)^(1/years)-1, or =RATE(years,0,-beginning,ending). This calculator does the same maths instantly and also shows the total growth and the ending-to-beginning multiple.