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CAGR Calculator

Tax & Financial Free Updated 25 Sep 2026
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ⓘ About this tool 🔄 Last updated 25 Sep 2026 ✓ Reviewed by TopToolAI Team

CAGR (Compound Annual Growth Rate) smooths out an uneven investment history into a single steady yearly rate. It is the figure people usually mean when they say an investment's "average annual return".

How to use CAGR Calculator

Step-by-step guide to the boxes below. Open it only if you need help.

  1. 1
    Starting value Text

    The value at the start, such as your first investment or first-year revenue.

    Example: 10000

  2. 2
    Ending value Text

    The value at the end of the period.

    Example: 20000

  3. 3
    Number of years Text

    Number of years between the start and end values. CAGR is the smooth yearly growth rate over that time.

    Example: 5

  4. 4
    Press “Calculate”

    Click the button under the boxes. If something is missing or not valid, a short message tells you which box to fix.

  5. 5
    Read your result

    Your answer appears under the button, with a short note in plain words where it helps. Change any box and press again to compare different numbers.

Embed this calculator on your website

Want this calculator on your own site? Copy the code below and paste it into the HTML of any page or post. It works the same as it does here. If you do not mind, leave the small link under it in place.

CAGR Calculator FAQs

How is CAGR different from an average of yearly returns?
A simple average can be misleading because gains and losses do not offset evenly, for example a 50% loss needs a 100% gain to break even. CAGR accounts for compounding and reflects the actual growth achieved.
Can CAGR be negative?
Yes. If the ending value is lower than the starting value, CAGR comes out negative, showing the annual rate of decline.
What is the CAGR formula?
CAGR = (ending value ÷ starting value)^(1 ÷ years) − 1.
Why use CAGR instead of the total return?
CAGR shows a smooth yearly growth rate, so you can compare investments of different lengths.

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