CAGR calculator

Find the compound annual growth rate between a starting value and an ending value over any number of years.

How it works

CAGR is the steady yearly rate that would turn the starting value into the ending value. Formula: CAGR = (ending value ÷ starting value) to the power (1 ÷ years) minus 1.

Example: 1,00,000 growing to 2,50,000 in 5 years is a CAGR of about 20.1 percent.

Questions

Why use CAGR instead of total return?

Total return ignores time. CAGR turns any result into a yearly rate, so you can compare investments held for different periods.

What is a good CAGR?

It depends on risk. Compare a strategy's CAGR with a simple index fund over the same years, and always look at the drawdown too.

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For education only. Results are estimates based on the numbers you enter and are not investment advice.