When to use this calculator
Find a constant annual growth rate connecting a starting and ending value. Does not account for money added or withdrawn during the period.
Explore the investment return calculators for other questions in this topic. For a related calculation, use the Capital Gains Return Calculator: Find absolute gain after subtracting entered purchase and selling costs.
PUTTING IT INTO PRACTICE
CAGR: a worked example
The values below are an illustrative example, not a recommendation. Replace them with measurements or assumptions that match your question.
| Input | Example value |
|---|---|
| Starting value | 1,000 |
| Ending value | 1,500 |
| Years | 5 |
| Result | 8.447177 % per year |
- Check the input labels and enter the example values above.
- Apply the relationship: CAGR (%) = ((ending ÷ starting)^(1/years) − 1) × 100.
- The result is 8.447177 % per year, rounded for display.
How to interpret your result
Does not account for money added or withdrawn during the period.
Return measures must cover the same time period before comparison. CAGR annualises two endpoint values but does not model interim cash flows. Current income yield differs from total return or yield to maturity.
Frequently asked questions
Can CAGR handle money added during the period?
The simple endpoint CAGR model does not account for intermediate deposits and withdrawals. Those require cash-flow-aware methods.
How do I use the cagr calculator?
Enter starting value, ending value, years. The result updates automatically. Use the units shown beside each input; the example values illustrate the method.
Which formula does this calculator use?
CAGR (%) = ((ending ÷ starting)^(1/years) − 1) × 100.
What should I check before using the result?
Does not account for money added or withdrawn during the period.
How are results rounded?
Scalar numbers display up to six decimal places, with scientific notation for very large or small values. Text, fraction, date and schedule outputs use the format described on the tool. Intermediate calculations use JavaScript floating-point arithmetic. Keep sensible precision for your measurements.
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