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CAGR Calculator

Enter starting value, ending value, years, and months to estimate compound annual growth rate.

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Results

Result Enter values to calculate.
Your result explanation will appear here.

Useful next checks

  • Check the inputs before relying on the result.
  • Try a second scenario to compare outcomes.
  • Read the guide below for context.

Intro

Use this CAGR calculator to estimate the compound annual growth rate between a starting value and an ending value over a chosen holding period.

What this calculator does

The calculator shows the annualized return that would turn the starting value into the ending value if growth happened at a steady rate. It also shows the total return across the whole period.

How it works

CAGR is calculated as (ending value / starting value) ^ (1 / years) - 1. Extra months are converted into a fraction of a year.

Example calculation

If an investment grows from 10,000 to 15,000 over 3 years, the total return is 50%. The CAGR is about 14.47% per year because steady 14.47% annual growth compounds to the same ending value.

How to use the result

Use CAGR to compare investments held over different lengths of time. It smooths the path into one annual figure, so it does not show volatility, drawdowns, fees, taxes, or the timing of cash flows. This is an estimate for education and planning, not financial advice.

Assumptions and limitations

  • The calculation assumes one starting value and one ending value.
  • It does not include deposits, withdrawals, taxes, or trading costs.
  • A positive CAGR does not mean future returns will continue.

FAQs

  • CAGR can be negative when the ending value is below the starting value.
  • CAGR is different from average yearly return because it includes compounding.
  • Use the investment return calculator when you also need income and fees.

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Frequently asked questions

What does CAGR mean?

CAGR is the steady annual growth rate that would turn the starting value into the ending value over the chosen period.

Is CAGR the same as total return?

No. Total return is the whole percentage change; CAGR annualizes that change over time.

Does this predict future returns?

No. It only summarizes the values entered and is not financial advice.

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