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Compound annual growth rate calculator
Calculate the compound annual growth rate between a positive starting and ending value.
On this page
How is CAGR calculated?
Compound Annual Growth Rate (CAGR) = (ending value ÷ beginning value)1 ÷ years − 1. It represents the constant annual compounded rate connecting the two values; it does not show year-to-year volatility.
Compound annual growth rate8.45%
Total numerical growth5,000
Total percentage growth50%
Calculator controls
How to calculate
Calculate the compound annual growth rate between a positive starting and ending value.
CAGR = ((ending value ÷ starting value)^(1 ÷ years) − 1) × 100
Worked example
Example inputs
Starting value: 10000 · Ending value: 15000 · Years: 5
Example resultCompound annual growth rate: 8.4471771 % · Total numerical growth: 5000 · Total percentage growth: 50 %
Assumptions and limits
CAGR is a smoothed compound rate. It does not show volatility or account for deposits and withdrawals between the starting and ending values.
Results are rounded for display; calculations use unrounded values. Read our calculation methodology.
Understanding the result
CAGR is the steady annual growth rate that would connect a starting value to an ending value over the specified period. Actual yearly returns can vary.
When this tool is useful
Use this growth rate calculator to compare growth over different holding periods when there are no deposits or withdrawals in between.
Understanding your inputs
| Input | What to enter |
|---|---|
| Starting value | Enter a number of at least 0.01 and no more than 1000000000000. |
| Ending value | Enter a number of at least 0.01 and no more than 1000000000000. |
| Years | Enter a number of at least 0.01 and no more than 1000. |
Frequently asked questions
What growth rate does this calculator show?
It shows compound annual growth rate: the constant annualized rate connecting the starting and ending values across the entered years.
Does this account for monthly deposits?
No. Additional cash flows change the meaning of the starting and ending values and need a cash-flow-aware return calculation.
Can the annual growth rate be negative?
Yes, if the positive ending value is smaller than the positive starting value.
Related articles
Go deeper: Read the worked Knowledge Base guide.