CAGR (Compound Annual Growth Rate) Calculator
Find the smooth annual rate that would take a starting value to an ending value over a given number of years.
Why CAGR beats a simple average
CAGR answers “what single yearly rate, compounded, gets me from A to B?” using CAGR = (end/begin)^(1/years) − 1. Unlike a simple average of yearly returns, it correctly accounts for compounding and volatility, so it is the honest way to describe multi-year growth.
Using it well
CAGR smooths out the bumps — it says nothing about the ride in between. A steady 8% and a wild path that also ends at 8% share a CAGR but not a risk profile. Use it to compare end-to-end performance, not to judge stability.
Frequently asked questions
Can CAGR be negative?
Yes. If the ending value is lower than the beginning value, CAGR is negative, indicating an annualized loss.