CAGR formula
CAGR equals (ending value ÷ starting value) raised to the power of 1 divided by years, minus 1. Multiply by 100 to express the result as a percentage.
ExampleGrowing from 1,000 to 2,000 over 5 years is about 14.87% CAGR.
CAGR Calculator
Annualize growth between a starting value and ending value over a number of years.
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Ifgrows tooveryears, what is the annual growth rate?
CAGR is the constant annual rate that would connect the starting and ending values. It smooths the path between them.
Compound annual growth rate—
Total growth—
Value multiple—
Starting value—
Ending value—
CAGR vs total return
Total return tells you the overall percentage change. CAGR converts that change into a smoothed annual rate, making periods of different lengths easier to compare.
Related calculators
Common questions
Does CAGR show actual year-by-year returns?
No. It is a smoothed annualized rate between the starting and ending values.
Can CAGR be negative?
Yes. If the ending value is lower than the starting value, CAGR is negative.