CAGR Calculator
Calculate Compound Annual Growth Rate and visualize your investment growth
| Year | Date | Projected Value | Annual Growth | % of Period |
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CAGR Formula Explanation
BV = Beginning Value
n = Number of Years
How Your CAGR Compares
| Investment Type | Typical CAGR Range | Your Return vs. Benchmark |
|---|
Find the ending value needed to achieve a target CAGR
Compare up to 3 investments side by side
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How to Use the CAGR Calculator
Enter the beginning value of your investment, the ending value, and the number of years. The calculator instantly computes the Compound Annual Growth Rate (CAGR), showing the steady annual return your investment would have needed to grow from the starting to ending value.
You can also use the reverse calculator — enter a beginning value, target CAGR, and time period to project what your investment will be worth at the end.
The results include a year-by-year growth table and a visual chart showing the compounding trajectory over time.
Why Use This Tool
CAGR is the standard metric for comparing investment performance across different time periods and asset classes. It smooths out the volatility of year-to-year returns to give you a single, easy-to-understand annual growth rate.
Investors, financial analysts, and business planners use CAGR to evaluate stock performance, revenue growth, market expansion, and portfolio returns. This tool makes the calculation instant and provides visual context for the numbers.
Key Features
- Instant CAGR calculation from beginning value, ending value, and time period
- Reverse calculator to project future values from a target CAGR
- Year-by-year growth table with compounding details
- Visual growth chart showing the compounding curve
- Support for any currency and time period
- No account needed — all calculations happen in your browser
Frequently Asked Questions
What is CAGR?
CAGR stands for Compound Annual Growth Rate. It represents the constant annual rate at which an investment would have grown from its beginning balance to its ending balance over a specified period. The formula is: CAGR = (Ending Value / Beginning Value) ^ (1/Years) - 1.
How is CAGR different from average annual return?
Average annual return is a simple arithmetic mean of yearly returns, which can be misleading because it does not account for compounding. CAGR gives the geometric mean, representing the actual annualized growth rate including the effects of compounding.
What is a good CAGR for investments?
This depends on the asset class and risk level. Historically, the US stock market has delivered roughly 10% CAGR over long periods. Fixed deposits and bonds offer lower but more stable CAGR. Higher CAGR generally comes with higher risk.
Can I use CAGR for business metrics?
Yes. CAGR is commonly used to measure revenue growth, customer base expansion, market size growth, and other business metrics over time. It provides a clean comparison metric regardless of year-to-year fluctuations.