Cagr Calculator
Calculate the Compound Annual Growth Rate (CAGR) of an investment over a period. Enter the beginning value, ending value, and number of years to see the annualized growth rate.
Published by:
isCalculator Editorial Team
Was this calculator helpful?
How to use this tool?
How to Use the CAGR Calculator
- Enter Beginning Value – The initial investment amount (e.g., $10,000). Must be a positive number.
- Enter Ending Value – The final value of the investment (e.g., $20,000). Must be greater than the beginning value.
- Enter Number of Years – The time period (e.g., 5). Must be greater than 0.
- Click "Calculate CAGR" – The tool computes the Compound Annual Growth Rate.
- CAGR Result – Shown as a percentage (e.g., 14.87%).
- Formula Breakdown – Displays each step: ratio calculation, exponentiation, and final subtraction.
Understanding the Result
Note: All inputs must be positive numbers. The ending value must exceed the beginning value for a positive CAGR.
Previous Results
| Result | Inputs | Date |
|---|
Frequently Asked Questions
CAGR stands for Compound Annual Growth Rate. It measures the mean annual growth rate of an investment over a specified period of time assuming profits are reinvested at the end of each year.
CAGR is calculated using the formula: (Ending Value / Beginning Value)^(1/Years) - 1. The result is expressed as a percentage.
Simple growth rate divides the total return by the number of years, ignoring compounding. CAGR accounts for compounding, providing a more accurate annualized return.
