CAGR Calculator
CAGR smooths investment performance into a single annual growth rate. Enter the starting value, ending value, and years to see the compound annual growth rate and total growth.
How to use this calculator
- Enter starting value.
- Enter ending value.
- Enter number of years.
- Your results appear instantly below and update as you change the numbers.
How this calculator works
CAGR = (ending ÷ starting) raised to 1/years, minus 1. It is the single constant annual rate that would compound the starting value into the ending value — it ignores year-to-year volatility to give one comparable number.
Frequently asked questions
Why use CAGR instead of total return?
Total return does not account for time. A 100% gain over 3 years (CAGR ~26%) is far better than the same gain over 10 years (CAGR ~7%). CAGR puts investments on a comparable annual basis.
Does CAGR assume constant growth?
Yes — that is exactly its simplification. Real investments fluctuate; CAGR just reports the equivalent steady rate, which is why it is the standard headline number for funds and portfolios.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect 2026 rules and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: IRS.gov · 2026 limits per IRS tax inflation adjustments.