RETURNS / FREE TOOL
CAGR calculator
Use this free CAGR calculator to find compound annual growth rate and annualized return from a starting value, ending value and holding period.
YOUR SCENARIO
Assumes no deposits or withdrawals between the two values. It smooths the path and does not measure volatility. Results over less than one year are annualized, not actual one-year returns.
How it works
CAGR = (ending value ÷ starting value)^(1 ÷ years) − 1.
Worked example
A value rising from 1,000 to 1,500 over five years has a total increase of 50% and a compound annual growth rate of about 8.45%. CAGR smooths the path; it does not mean the investment gained 8.45% every year.
Common questions
How do I calculate CAGR?
Divide the ending value by the starting value, raise the result to the power of 1 divided by the number of years, then subtract 1. Multiply by 100 to express the result as a percentage.
Can I use CAGR if I added or withdrew money?
Not directly. This calculator assumes no intermediate cash flows. Adding money can overstate investment performance; a cash-flow-aware method such as money-weighted return is needed for that situation.
What happens with a period shorter than a year?
The result is annualized. It is not the actual return earned over a full year and does not predict what a short-term result will become.
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