Investment Calculator
CAGR Calculator
Calculate the compound annual growth rate of an investment or asset over a specified number of years.
Use the CAGR Calculator
Your results
- CAGR
- 0.00%
- Total growth
- $0.00
- Growth multiple
- 0.00x
How this calculator works
- What it does
- Calculate the compound annual growth rate of an investment or asset over a specified number of years.
- Inputs used
- The estimate uses starting value, ending value, and number of years.
- Calculation approach
- The calculator applies the relationships defined for the cagr calculator to those inputs and updates cagr, total growth, and growth multiple.
- How to read the result
- Treat the result as a scenario based on the values entered. Compare a few reasonable inputs and consider costs, taxes, timing, or risks that the calculator does not include.
How to Use This Calculator
- Enter Starting value using values that match the scenario you want to evaluate.
- Enter Ending value using values that match the scenario you want to evaluate.
- Enter Number of years using values that match the scenario you want to evaluate.
- Review the assumptions for the cagr calculator, especially rates, time periods, and optional amounts.
- Select Calculate to update the results, then adjust one input at a time to compare scenarios.
Understanding the Results
- CAGR
- A percentage or comparison measure that summarizes the relationship between the calculator's key values.
- Total growth
- The portion of the result attributed to growth rather than money contributed or originally invested.
- Growth multiple
- A percentage or comparison measure that summarizes the relationship between the calculator's key values.
Common Mistakes
- Treating an assumed return, growth rate, inflation rate, or yield as guaranteed.
- Leaving out taxes, fees, inflation, or timing differences that can affect real-world results.
- Mixing monthly and annual figures or entering percentages in the wrong units.
- Relying on one projection instead of comparing a range of reasonable assumptions.
Worked Example
Example inputs
- Starting value
- $10,000
- Ending value
- $20,000
- Number of years
- 10
Example results
- CAGR
- 7.18%
- Total growth
- $10,000.00
- Growth multiple
- 2.00x
For this illustrative scenario, the cagr is 7.18%. Changing any input can materially change the result, so use the example as a walkthrough rather than a guarantee.
Frequently asked questions
What does CAGR mean?
CAGR stands for compound annual growth rate. It represents the constant annual rate that would turn a starting value into an ending value over a given period.
How is CAGR different from total return?
Total return measures the full change between the starting and ending values, while CAGR converts that change into an annualized compound rate.
Does CAGR reflect investment volatility?
No. CAGR smooths growth into one annual rate and does not show the gains, losses, or volatility that occurred during individual years.
Can CAGR be negative?
Yes. CAGR is negative when the ending value is lower than the starting value. An ending value of zero produces a CAGR of negative 100%.
Can I use CAGR to compare investments?
CAGR can help compare annualized growth over equal or different time periods, but risk, fees, cash flows, taxes, and volatility should also be considered.
What does the CAGR Calculator calculate?
Calculate the compound annual growth rate of an investment or asset over a specified number of years. The result is based only on the inputs and assumptions shown on the page.
How should I interpret the cagr from the CAGR Calculator?
Use it as an estimate for the scenario entered, not as a guarantee or personal recommendation. Test changes to starting value, ending value, and number of years to see which assumptions have the greatest effect.