Free cagr calculator
Calculate compound annual growth rate (CAGR) — enter start and end values and the number of years to find the smoothed annual growth rate, updated live, as you type.
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CAGR is a smoothed rate and doesn't reflect actual year-to-year volatility. Past returns don't predict future performance.
Results are estimates. Consult a professional.
How the CAGR calculator works
Compound Annual Growth Rate (CAGR) expresses how fast an investment grew on an annualised, compounded basis between two points in time. Unlike a simple average, CAGR irons out year-to-year fluctuations and gives you the single consistent rate that would have produced the same start-to-finish result.
Worked example: $50,000 grows to $89,542 in 6 years
Your investment portfolio was worth $50,000 at the start of 2018. By the end of 2023 — 6 years later — it has grown to $89,542. What was your CAGR?
Growth of $50,000 at various CAGRs and time periods
The table illustrates how a $50,000 starting investment grows at four different CAGR levels over 5, 10, 15, and 20 years, showing how time magnifies even small differences in annual return.
| CAGR | 5 Years | 10 Years | 15 Years | 20 Years |
|---|---|---|---|---|
| 6% | $66,911 | $89,542 | $119,828 | $160,357 |
| 8% | $73,466 | $107,946 | $158,608 | $233,047 |
| 10% | $80,526 | $129,687 | $208,862 | $336,375 |
| 12% | $88,117 | $155,292 | $273,683 | $482,315 |
Source: FV = $50,000 × (1 + CAGR)ⁿ; rounded to nearest dollar.
Tips for using CAGR effectively
CAGR is the go-to metric for comparing investments, but it has real blind spots. These five tips will help you use it — and question it — intelligently.
- Pair CAGR with a volatility measure — two funds with identical CAGRs can have wildly different risk profiles; always check standard deviation or max drawdown alongside CAGR.
- Watch out for cherry-picked start dates — CAGR is highly sensitive to end points; a fund manager can inflate CAGR by starting the clock at a market trough.
- Use CAGR to compare across asset classes — comparing a stock fund's 10% CAGR with a bond fund's 4% CAGR is meaningful only if both are measured over the same period.
- Adjust for inflation to find real CAGR — divide (1 + nominal CAGR) by (1 + inflation) and subtract 1 to see your true purchasing-power growth.
- Remember CAGR is backward-looking — past compounded growth doesn't guarantee future results; use it as a benchmark, not a prediction.
Accuracy and limitations
CAGR assumes smooth, uninterrupted compounding between only two data points — the start and end values. It cannot capture interim volatility, drawdowns, or the sequence-of-returns risk that matters for retirees making withdrawals. It also ignores dividends paid in cash (not reinvested), taxes, and management fees unless those effects are already reflected in the ending value you enter.
To get the most accurate CAGR, enter the total-return ending value — including reinvested dividends and distributions — rather than the price-only return, which understates real compound growth for income-producing assets.
Not financial advice — consult a financial professional for your specific situation.
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