CAGR calculator
CAGR is the constant annual rate that takes a starting value to an ending value over the years held. It is not the same as cumulative return, and it is not for deposits or withdrawals (those need the XIRR calculator).
CAGR = (ending value ÷ starting value)(1 ÷ years) − 1
CAGR
Enter a starting value, ending value, and years held to calculate.
How to calculate CAGR
- Enter starting and ending values. Starting value must be greater than zero. Ending value may be zero for a complete loss. A negative ending value cannot be annualized with this formula.
- Enter years held. Use a decimal for a partial year, for example 2.5, or optional start and end dates (actual/365). Extra deposits still need XIRR.
- Compare CAGR and cumulative return. Cumulative return is ending divided by starting, minus one. CAGR is that change expressed as a constant annual rate.
Frequently asked questions
- How do you calculate CAGR?
- Divide the ending value by the starting value, raise to 1 divided by years held, then subtract 1. $10,000 growing to $16,105.10 over 5 years is a 10% CAGR. That is not the same as the 61.05% cumulative return.
- Why don't deposits and withdrawals use CAGR?
- CAGR assumes one lump sum with no cash in or out. Deposits and withdrawals need a money-weighted return (XIRR) that dates each cash flow. Use the XIRR calculator for those. This calculator will not treat extra contributions as if they had been there from day one.
- Is this investment advice?
- No. The calculator is for general informational and educational purposes only. It is not a recommendation to buy, sell, or hold any security.
Related tools
- XIRR calculatorHave dated deposits? Use money-weighted return.
- Rule of 72 calculatorTurn a rate into an approximate doubling time.
- Compound growth calculatorProject a balance when you also add contributions.
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