CAGR Calculator

This CAGR calculator measures the constant annual growth rate that would turn a starting value into an ending value over a given period.

CAGR is useful because it turns irregular real-world performance into a standardized annual rate that is easier to compare across funds, businesses, portfolios, or revenue series.

It does not describe the path actually taken year to year. It describes the equivalent smooth annual rate.

Enter the starting value, ending value, and number of years between them.

Use the result to compare performance across investments or business metrics with different time spans.

Check the implied growth path if you want to visualize what a constant annual growth rate would look like.

The calculator divides the ending value by the starting value, raises the result to the inverse of the holding period, and subtracts one.

The table and chart then rebuild a smooth annual path using the calculated CAGR.

This makes the output easier to interpret without pretending that actual year-to-year performance was smooth.

If an investment grows from 10,000 to 18,000 over five years, CAGR tells you the single annualized growth rate that would produce the same result.

That makes it easier to compare with another investment that may have run for seven years rather than five.

Use CAGR for normalized comparison, not for forecasting certainty. Actual returns will almost never arrive in a perfectly smooth sequence.

A higher CAGR is generally better, but only when the risk profile and cash-flow pattern are also comparable.