Quick examples
CAGR
24.57%
Absolute Return
200.00%
Total Gain
$200,000
CAGR Calculator — Quick Reference
The CAGR Calculator is an online tool that calculate Compound Annual Growth Rate for investments and business metrics. Everything for the CAGR Calculator is on this page: the interactive calculator, the formula, a worked example, step-by-step guidance, and frequently asked questions — no other pages required.
At a glance
- Main inputs
- Starting value
- Ending value or cash flows
- Holding period
- Main outputs
- Absolute return
- Annualized return (CAGR/XIRR/ROI)
Direct answers
What is the CAGR Calculator?
The CAGR Calculator is an online tool that calculate Compound Annual Growth Rate for investments and business metrics.
What formula does the CAGR Calculator use?
The standard formula is CAGR = (Ending Value / Beginning Value)^(1/Years) - 1. This converts total growth into an equivalent annual compounded rate.
How does the CAGR Calculator work?
CAGR = (Ending Value / Beginning Value)^(1/years) - 1. Enter start value, end value, and years.
Formula Used
The equation below is what this calculator applies. Variable definitions follow when symbols are used.
Equation
CAGR = (Ending Value / Beginning Value)^(1/years) − 1
Worked Example: $100,000 grew to $250,000 in 5 years
Sample inputs and the results this calculator produces for the scenario below.
Inputs
- Starting Value
- $100,000
- Ending Value
- $250,000
- Years
- 5
Results
- CAGR
- ~20.1% p.a.
CAGR smooths year-to-year volatility into one annual rate — useful for comparing funds or portfolios over different periods.
How CAGR Calculator Works
CAGR = (Ending Value / Beginning Value)^(1/years) - 1. Enter start value, end value, and years.
What to enter
Use the calculator above to set your amounts, rates, and tenure. Results update as you move sliders or type values — switch currency if you are planning in USD, INR, or another supported unit.
Step-by-step
- Open the CAGR Calculator and enter your amounts, rates, and time period in the input fields.
- Review the results panel — totals update instantly when you change any value.
- Compare the worked example and formula below to verify the math matches your scenario.
- Read the FAQs for common edge cases, tax notes, and planning tips specific to this calculator.
CAGR — Frequently Asked Questions
Each question is answered directly below. Expand any item for the full response.
What is CAGR?
CAGR stands for compound annual growth rate and shows the smoothed yearly growth rate between a starting and ending value. It is useful for comparing long-term growth across investments held for different durations.
What formula does a CAGR calculator use?
The standard formula is CAGR = (Ending Value / Beginning Value)^(1/Years) - 1. This converts total growth into an equivalent annual compounded rate.
When is CAGR misleading?
CAGR can mislead when there are additional contributions or withdrawals during the journey because it assumes a single start and end value. In those cases, XIRR is usually the better measure.
Should I compare CAGR across all asset classes directly?
Only after considering risk, volatility, and taxes. A higher CAGR from a very risky asset is not automatically better than a lower but steadier return from a more suitable allocation.
Disclaimer
- This calculator gives you an estimate only. It is not a promise of exact results.
- This is general information, not personal financial, tax, or legal advice.
- You are responsible for your own decisions. Talk to a qualified professional when it matters.
- Past performance does not mean future results. Real returns can vary.