CAGR Calculator: Compound Annual Growth Rate
Enter where something started, where it ended and how long it took. See the smooth yearly growth rate and how long it takes to double.
What we noticed
Year by year
How this calculator works
CAGR is the single steady yearly rate that would take you from your starting value to your ending value in the number of years you give. The formula is (end divided by start) to the power of 1 over the years, minus 1.
It smooths out the ups and downs. A fund that rose 50% one year and fell 20% the next did not earn a clean average. CAGR gives the rate that really matches your start and end.
This leaves out any money you added or took out along the way. For regular contributions, use an IRR calculator instead.
The formulas
| CAGR | (End value / Start value) ^ (1 / years) - 1 |
|---|---|
| Total growth | End value / Start value - 1 |
| Doubling time | ln(2) / ln(1 + CAGR) |
| Rule of 72 | 72 / (CAGR as a number) = about years to double |
Sources: Background reading, Investor.gov: Annual return, Background reading, Investor.gov: Compound interest
Frequently asked questions
What is CAGR?
Compound annual growth rate. It is the steady yearly rate that takes a value from where it started to where it ended.
Is CAGR the same as average return?
No. An average of yearly returns ignores compounding and can overstate what you earned. CAGR matches your real start and end values.
What is the rule of 72?
A quick way to guess how many years it takes to double. Divide 72 by the yearly rate as a number. At 8%, it is about 9 years.
Can CAGR be negative?
Yes. If the end value is lower than the start, the rate is negative, which means the value shrank by that much a year on average.
Does CAGR include money I added?
No. It only compares the start and end values. If you added or withdrew money, use an IRR calculator.