Worked examples
The same formula, CAGR = (ending / beginning) raised to 1 / years, minus 1, on six real pairs. The rate depends only on how many times the amount grew and how long it took, not on the amount itself, which is why the first two rows are identical.
| Beginning to ending | CAGR | Built from |
|---|---|---|
| 10,000 to 20,000 | 7.18% | Doubled over 10 years |
| 1,000 to 2,000 | 7.18% | Doubled over 10 years |
| 2,000 to 1,000 | -6.70% | Halved over 10 years |
| 1,000 to 1,500 | 50.00% | Grew 1.5x over 1 year, so CAGR equals the plain return |
| 5,000 to 20,000 | 31.95% | Quadrupled over 5 years |
| 100,000 to 250,000 | 4.69% | Grew 2.5x over 20 years |
Best for
- Comparing investments of different durations on equal terms
- Measuring yearly growth of a portfolio, fund, or business revenue
- Checking marketing promises like "10x in 5 years"
Privacy
All math runs locally in your browser. Your values are never sent to a server.
Quick tips
- CAGR smooths out volatility: it shows the constant yearly rate that would take you from start to finish.
- A negative CAGR means the investment shrank on average every year.
- Use the same currency for both values — the rate itself is currency-independent.
How to use this tool
- Enter the beginning value of the investment.
- Enter the ending value and the number of years between them.
- Read the CAGR, total return, and growth multiple — then copy the summary if you need it.
Common questions
What is CAGR?
CAGR (compound annual growth rate) is the constant yearly rate that would grow your beginning value into the ending value over the given number of years. It smooths out ups and downs into one comparable number.
How is CAGR calculated?
CAGR = (ending value / beginning value)^(1 / years) - 1. For example, growing 1,000 into 2,000 over 5 years gives (2)^(1/5) - 1 = about 14.87% per year.
Why are negative or zero values rejected?
CAGR is mathematically undefined for zero or negative boundaries — a percentage rate cannot bridge a sign change. For investments that can go negative, track yearly returns instead.
Does CAGR include fees, dividends, or inflation?
No. CAGR is computed purely from the two values you enter. Use total-return values (with dividends reinvested) and, if needed, compare against the inflation calculator to see real growth.