CAGR Calculator
Calculate the compound annual growth rate (CAGR) of your investment instantly. Enter beginning value, ending value, and the number of years to see CAGR, total return, absolute return, and a yearly growth projection. Free, no sign-up required.
The initial amount invested or the starting value of your investment.
The final value of your investment at the end of the period.
The investment period in years. Can include partial years (e.g., 3.5).
📈 Compound Annual Growth Rate
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Total Return
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Absolute Gain
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Multiplier
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📊 Year-by-Year Growth Projection (at CAGR rate)
| Year | Value | Growth |
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Assumes steady growth at the CAGR rate. Actual year-to-year returns will vary.
💡 What this means
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- Enter Beginning Value — the initial amount you invested or the starting value of the asset/portfolio.
- Enter Ending Value — the current or final value of your investment at the end of the holding period.
- Enter Number of Years — the length of the investment period. You can use partial years (e.g., 3.5 for 3 years and 6 months).
- Click Calculate — see your CAGR, total return, absolute gain, a year-by-year growth table, and a plain-English interpretation instantly.
📌 5 tips for using CAGR effectively
- ✓ CAGR smooths volatility, it doesn't eliminate it. An investment with 15% CAGR might have lost 20% in one year and gained 50% the next. Always check annual returns alongside CAGR to understand risk.
- ✓ Compare CAGR to a benchmark. A 10% CAGR is great for bonds but mediocre for stocks. Compare against the S&P 500 (~10% historically) or a relevant index to assess whether your investment outperformed.
- ✓ Use CAGR for periods of 1+ years. CAGR is meaningless for periods under a year. For shorter periods, use annualized return or simple percentage change instead.
- ✓ Watch for cash flow distortions. If you added or withdrew money during the period, CAGR won't reflect true performance. Use IRR (internal rate of return) or time-weighted return for portfolios with cash flows.
- ✓ Don't project CAGR blindly into the future. Past CAGR is not a guarantee of future returns. A 25% CAGR over 3 years is unlikely to continue for 20 years. Use CAGR as a historical measure, not a prediction.
Disclaimer: This calculator provides CAGR estimates for educational and analysis purposes only. CAGR does not account for investment volatility, cash flows, taxes, fees, or inflation. Past performance does not guarantee future results. Consult a financial advisor for professional investment guidance.
Related Tools
CAGR is one piece of your investment analysis toolkit. These six calculators cover the rest — from ROI and compound interest to inflation-adjusted returns and retirement planning.
- ROI Calculator — measure the total return on investment for any project or capital allocation, the simpler companion to CAGR.
- Compound Interest Calculator — project how an investment grows with compounding at a known rate, the flip side of CAGR (which derives the rate from observed values).
- Inflation Calculator — adjust your CAGR for inflation to see real (inflation-adjusted) growth rather than nominal returns.
- Return on Equity Calculator — measure a company's ROE and DuPont 3-factor breakdown, complementary to CAGR for equity investment analysis.
- Investment Fee Calculator — see how management fees erode your CAGR over time. Even a 1% fee can reduce long-term returns by 20%+.
- Retirement Savings Calculator — project your retirement nest egg using CAGR assumptions for long-term portfolio growth.