Free online calculator
CAGR Calculator
Calculate compound annual growth rate from start value, end value, and years.
Quick Answer
How It Works
CAGR = (ending value / starting value)^(1 / years) - 1.
- Enter starting and ending values.
- Enter number of years.
- Review annualized growth percentage.
Examples use USD-style formatting. Tax rates, fees, and legal rules vary by country and change over time — treat results as estimates and confirm important numbers with a qualified professional.
Interactive Calculator
CAGR: 9.86%
Example Use Case
If 10,000 grows to 16,000 in 5 years, CAGR shows the smoothed yearly growth rate.
Detailed Guide
CAGR is useful because it converts uneven growth into one annualized rate, making multi-year comparisons easier.
Its main limitation is smoothing: it hides path volatility, drawdowns, and sequence risk that matter in real decisions.
Use CAGR as a summary metric, then inspect period-by-period behavior for risk-aware interpretation.
Combining CAGR with absolute return and time horizon provides a clearer performance picture than any single metric alone.
Assumptions and Limits
CAGR smooths volatility and does not represent year-by-year fluctuations.
Common Mistakes to Avoid
- Using periods in months without converting to years.
- Treating CAGR as guaranteed future return.
- Comparing CAGR across very different risk profiles.
FAQ
Can I use this calculator for free?
Yes. This tool is free and designed for practical day-to-day decisions.
Why might results differ from another website?
Differences usually come from rounding rules, assumptions, or region-specific formulas.
Is this suitable for legal or financial advice?
No. Treat outputs as guidance and validate with qualified professionals for final decisions.
Related Calculators
Related Word Tools
How we choose formulas and check results: Methodology · Last reviewed 2026-07-25