CAGR Calculator

Find the Compound Annual Growth Rate (CAGR) between two values, over any number of years.

How it is calculated

Takes the nth root of the growth multiple, smoothing an uneven multi-year return into a single annual rate.

Formula

CAGR: (Ending ÷ Beginning)^(1/years) − 1

Frequently asked questions

Does CAGR reflect year-to-year volatility?

No. CAGR turns everything into one smooth, steady rate. Two investments can have the same CAGR, even if one had a much bumpier journey to get there than the other.