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CAGR Calculator

Find the compound annual growth rate between two values, project a future value, or work out the growth rate you need to reach a target — with a year-by-year table.

Average return vs CAGR (optional)

Enter each year's return in %, separated by commas. The simple average overstates real growth whenever returns swing up and down — for example +50% then −50% averages 0%, but turns 10,000 into 7,500.

💡 Pro tips
  • →Compare investments on CAGR over the same period — a 3-year and a 10-year CAGR are not directly comparable.
  • →CAGR hides volatility: two funds with the same CAGR can have very different ups and downs.
  • →If you added or withdrew money during the period, use XIRR instead of CAGR.
  • →Use the Required CAGR mode to sanity-check goals — anything above 15% a year for decades is unrealistic for most portfolios.

This tool is for informational purposes only. Always verify results with a qualified professional.

What is the CAGR Calculator?

The CAGR Calculator measures the compound annual growth rate: the single, steady yearly rate that would take an investment, a business metric or any other value from its starting point to its ending point over a given period. It has three modes. Find CAGR uses a beginning value, an ending value and the number of years (or two dates). Future Value projects where a starting amount ends up at a chosen CAGR. Required CAGR tells you the growth rate needed to reach a target, and can compare that with the rate you actually expect. Every result comes with total growth, a monthly equivalent rate and a year-by-year growth table.

The formula is CAGR = (Ending value ÷ Beginning value)^(1 ÷ years) − 1. Worked example: a portfolio grows from USD 10,000 to USD 25,000 in 5 years. 25,000 ÷ 10,000 = 2.5, and 2.5^(1/5) = 1.2011, so the CAGR is about 20.11% a year. Total growth is 150%, but spread over five compounding years that is 20.11% a year — not 150 ÷ 5 = 30%. The year-by-year table shows the path: about 12,011 after year 1, 14,427 after year 2, 17,329 after year 3, 20,814 after year 4 and exactly 25,000 after year 5. Periods do not have to be whole years: growing 10,000 to 15,000 in 3.5 years is a CAGR of about 12.28%. When you enter dates, the calculator counts the days between them and divides by 365.25.

Running the formula backwards gives future value: End = Start × (1 + CAGR)^years. USD 10,000 growing at 12% a year for 10 years becomes about USD 31,058. The Required CAGR mode answers the planning question: to turn 50,000 into 100,000 in 7 years you need about 10.41% a year. If you only expect 8%, the tool shows how far short you would fall and how many years 8% would actually take, so you can adjust the target, the time frame or the amount you start with.

Why not just average the yearly returns? Because the arithmetic mean ignores compounding and always overstates growth when returns are volatile. Take returns of +20%, −10%, +30% and −15%. Their simple average is 6.25%, which suggests 10,000 should grow to about 12,744 in four years. In reality 10,000 × 1.20 × 0.90 × 1.30 × 0.85 = 11,934, a CAGR of just 4.52%. The extreme case is +50% followed by −50%: the average return is 0%, yet you end with 7,500 from 10,000 — a CAGR of about −13.40%. Enter your own yearly returns in the comparison box below the calculator to see the gap for your investment.

CAGR is the standard way to compare investments, funds, revenue growth, user growth or property prices over different time frames, because it converts everything to an annual rate. Keep its limits in mind: it smooths the path and hides volatility, it only looks at the first and last values, and it does not account for money added or withdrawn along the way. For portfolios with regular deposits, use an internal rate of return (XIRR) instead. CAGR also cannot be calculated from a zero or negative starting value — in that case look at absolute growth or ROI instead.

How to Use This Calculator

  1. 1Choose a currency: USD, PKR, AED, SAR, GBP, EUR or INR.
  2. 2Pick a mode: Find CAGR, Future Value, or Required CAGR to reach a target.
  3. 3Enter the beginning value and either the ending value, the target value or the CAGR, depending on the mode.
  4. 4Set the period in years (decimals like 3.5 are fine) or switch to dates and pick a start and end date.
  5. 5Click Calculate to see the CAGR, total growth, monthly equivalent rate and the year-by-year growth table.
  6. 6Optionally enter actual yearly returns in the comparison box to see how the simple average return differs from the real CAGR.

Frequently Asked Questions

How do you calculate CAGR?+
Divide the ending value by the beginning value, raise the result to the power of 1 ÷ number of years, then subtract 1. For 10,000 growing to 25,000 in 5 years: (2.5)^(0.2) − 1 = 20.11% a year.
How do I calculate CAGR in Excel or Google Sheets?+
Use =(End/Start)^(1/Years)-1, or =RRI(Years, Start, End). For example =RRI(5, 10000, 25000) returns 0.2011, or 20.11%. Format the cell as a percentage.
What is a good CAGR?+
It depends on the asset and the risk. Broad stock indices have historically returned roughly 7–10% a year over long periods, savings accounts far less. For a business, a revenue CAGR well above inflation and above competitors is a good sign. Always compare CAGRs for the same period and similar risk.
What is the difference between CAGR and average annual return?+
Average annual return is the simple mean of each year's return; CAGR is the compounded rate that links the start and end values. With volatile returns the average is always higher. +50% then −50% averages 0%, but the CAGR is about −13.4% because you end with less than you started.
Can CAGR be negative?+
Yes. If the ending value is lower than the beginning value, CAGR is negative. Falling from 10,000 to 7,500 over two years is a CAGR of about −13.40% a year.
Can I calculate CAGR for less than one year or for partial years?+
Yes, use fractional years or dates. Growth from 10,000 to 15,000 in 3.5 years is about 12.28% a year. For periods under a year, CAGR annualizes the result, which can make short-term gains look extreme — treat it with care.
Why can't CAGR be calculated with a zero or negative starting value?+
The formula divides by the beginning value and takes a root of the ratio. Dividing by zero is undefined, and a negative ratio has no real root for most periods. Report absolute change instead, or measure from the first period with a positive value.
Is CAGR the same as IRR or XIRR?+
Only when there is a single investment at the start and a single value at the end. If money is added or withdrawn during the period, CAGR ignores those cash flows while IRR/XIRR accounts for their timing, so use XIRR for SIPs and regular contributions.

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