CAGR Calculator

Written with AI assistance · Reviewed by the Talreon team · Updated 21 October 2026 · Figures log · Educational, not financial advice

How this CAGR calculator works

CAGR, the compound annual growth rate, is the single yearly rate that would turn a starting value into an ending value if growth compounded at the same pace every year. It is the fairest way to compare growth over periods of different length, because it converts any total change into a per-year figure. The calculator also works backwards: given a growth rate, it can find the ending value, the starting value you would need, or how many years the growth would take.

When to use this calculator

• Compare the growth of two investments, a business's revenue or a home value over different time spans.
• Turn a target into a required rate, for example how fast savings must grow to reach a goal in 10 years.
• Project an ending value from an assumed rate, or find how long a target would take.

How to calculate CAGR

1. Divide the ending value by the starting value to get the growth multiple.
2. Raise the multiple to the power of 1 ÷ number of years.
3. Subtract 1 and multiply by 100 to express it as a percentage.

To use the calculator, choose what to solve for, fill in the other three fields, and read the result. The field being solved is shaded and filled in for you.

CAGR formula

Worked example: $10,000 to $18,000 in 6 years

An investment grows from $10,000 to $18,000 in 6 years. The growth multiple is 18,000 ÷ 10,000 = 1.8. Then 1.8^1/6 = 1.10292, so the CAGR is 10.29% a year. The total growth is 80%, but simply dividing 80% by 6 years gives 13.33%, which overstates the yearly rate because it ignores compounding.

Working backwards: $10,000 growing at 7% a year for 10 years reaches $19,671.51. To have $50,000 in 15 years at 6% a year you would need to start with $20,863.25. And at 6% a year, $10,000 takes 15.73 years to reach $25,000.

CAGR versus average annual return

An average of yearly returns can be very different from CAGR when returns swing. Suppose an investment gains 50% one year and loses 50% the next. The simple average is 0%, yet $10,000 becomes $15,000 and then $7,500. The CAGR over the two years is (7,500 ÷ 10,000)^1/2 − 1 = −13.40% a year, which matches what actually happened to the money. When you compare funds or plans, prefer CAGR (sometimes called the annualized return) over a simple average.

Reading the results

The headline is the value you chose to solve for. Compound annual growth rate is the effective yearly rate. Total growth is the whole change as a percentage of the starting value, and Growth multiple is ending ÷ starting. Gain or loss is the change in dollars. A negative CAGR means the value shrank. To estimate how long money takes to double at a given rate, use the Rule of 72 calculator.

Common mistakes

• Including deposits in the ending value. If you added money along the way, CAGR will overstate the return. A money-weighted return (IRR) is needed in that case.
• Comparing CAGRs from different time windows. A period that starts at a market low will look better than one that starts at a peak.
• Treating a past CAGR as a forecast. It describes what happened between two dates, not what will happen next.
• Mixing months and years. Enter part-years as decimals, for example 2.5 for two and a half years.

Related calculators

• Investment return calculator — total return and CAGR side by side.
• Rule of 72 calculator — quick estimate of how long money takes to double.
• Compound interest calculator — growth with regular contributions.
• Future value calculator — what a starting amount could become.

Related education

• How gold profit is calculated — total return on a gold purchase before annualising it.
• How to think about investment returns — CAGR, volatility and fees.
• How compound interest works — time, rate and contributions.
• ROI explained — total return and its limits.
• How inflation reduces purchasing power — nominal vs real growth.

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