CornerTools

CAGR Calculator

Calculate annualized growth rate between two investment values.

CAGR
20.11%
Average yearly growth rate over the period

Finds the compound annual growth rate (CAGR): the steady yearly rate that would take a starting value to a final value over a number of years. Use it for investments, revenue, prices or any quantity that grows over time.

Understanding the result

CAGR smooths out the path. An investment that rose 50% one year and fell 20% the next has one CAGR, as if it had grown evenly — which makes investments over different periods comparable.

A negative CAGR means the value fell. CAGR says nothing about the ups and downs along the way.

How to use it

Enter the initial value, the final value and the time period in years; part years such as 2.5 are fine. The initial value and the period must be above zero. The values need no currency, so the calculator works for any unit.

How it works

The ratio of final to initial value is taken to the power of one over the number of years; the result is shown to two decimal places.

CAGR = (Final ÷ Initial)^(1 ÷ Years) − 1

Examples

100,000 to 250,000 in 5 years

Growing from 100,000 to 250,000 is a CAGR of 20.11% — not the 30% a year you get by dividing the 150% gain by five.

A rise and a fall

Up 50% to 150, then down 20% to 120, over two years: the CAGR is 9.54%, as if it had grown the same amount each year.

See also