CAGR Calculator
Find the compound annual growth rate of any investment, business metric, or value over time — and see the growth curve plotted year by year. This free online financial calculator runs entirely in your browser — no signup, no data sent anywhere.
Inputs
Results
Interactive Chart
Drag to pan, scroll to zoom, shift+drag to box-zoom. Combined view of balance, principal paid, interest paid, and total paid.
Amortization Schedule
| Period | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| Click Calculate to generate the schedule. | ||||
How It Works (Formula & Method)
The CAGR formula is CAGR = (Ending Value ÷ Starting Value)1/n − 1, where n is the number of years. A 10-year investment that grew from $10,000 to $25,000 has a CAGR of (25000/10000)1/10 − 1 ≈ 9.6%. The "compound" part means this growth rate applied every year would replicate the actual outcome — not the simple average return.
Worked Example
Below is a worked example using the calculator's default values. The same numbers are pre-filled in the form above so you can press Calculate and see the result without typing anything.
Inputs used:
- Starting Value ($): 10000
- Ending Value ($): 25000
- Time Period (years): 5
With these inputs, the calculator computes the metrics shown in the Results panel. Change any value and press Calculate again to see how the result responds — the live widget and the chart both update instantly.
About the CAGR Calculator
CAGR — Compound Annual Growth Rate — is the smoothed annualized rate of return that would take an investment from its starting value to its ending value over a given period, assuming profits are reinvested every year. Unlike a simple "total return," CAGR isolates the compounding effect so you can fairly compare investments held over different time spans.
It is the single most common metric used by investors, business analysts, and financial reporters when talking about "how fast did this grow per year on average."
How to Use This Calculator
Enter the value at the start of your holding period and the value at the end (both in the same currency), then the number of years between them. Press Calculate. You will see the annualized growth rate, the total dollar change, and a chart of the smoothed year-by-year growth path.
Tips & Considerations
- CAGR smooths out volatility. A stock that doubled in year one and then halved by year five looks identical, by CAGR, to one that grew steadily.
- When comparing investments, always use the same period — CAGR over different windows is not directly comparable.
- CAGR ignores intra-period contributions or withdrawals. For irregular cash flows, use the IRR Calculator instead.
Frequently Asked Questions
Is CAGR the same as annual return?
They are related but not identical. Annual return is each year's actual return; CAGR is the single rate that, compounded annually, would produce the actual ending value from the starting value over the period.
Is a higher CAGR always better?
For comparing investments of similar risk, yes. But a higher CAGR often comes with higher volatility — a smooth 7% CAGR is generally safer than a wild 10% CAGR.
Can CAGR be negative?
Yes — if the ending value is less than the starting value, CAGR is negative, showing the average annual loss.
What is a good CAGR?
For broad U.S. stock-market indexes, long-term CAGR has historically averaged around 7–10% (adjusted for inflation, closer to 6–7%). Anything well above that for an extended period is exceptional.
Reviewed against: IRS publications, Consumer Financial Protection Bureau (consumerfinance.gov), and current published market data. Results are estimates for educational use only — not financial, tax, or legal advice.