CAGR Calculator
Calculate compound annual growth rate (CAGR) from start and end values, or project future value at a given growth rate. Includes a visual growth chart.
For informational purposes only. Not financial advice. Calculations are estimates and may not reflect your exact situation. Consult a qualified financial adviser for personalised guidance.
About CAGR Calculator
CAGR is the standard metric for measuring how fast an investment has grown on an annualized basis. This calculator supports two modes: calculate CAGR from historical data, or project future values using an expected growth rate.
How CAGR Is Calculated
The formula is (Ending Value / Starting Value) ^ (1 / Years) - 1. It tells you the steady annual rate that would grow your starting value into your ending value over the given period. Unlike simple averages, CAGR accounts for the compounding effect and gives you a more accurate picture of actual performance.
Projection Mode
Switch to projection mode to answer questions like "If I invest $10,000 today and it grows at 8% per year, what will it be worth in 20 years?" The bar chart shows how value accumulates over time, making the power of compound growth easy to visualize. For more detailed projections with monthly contributions, try the Compound Interest Calculator.
Using CAGR to Compare Investments
CAGR is ideal for comparing investments held for different lengths of time. A stock that turned $5,000 into $12,000 over 7 years had a 13.3% CAGR, while another that turned $5,000 into $9,000 over 3 years had a 21.6% CAGR. The ROI Calculator can help you compare these side by side with additional metrics. All calculations run in your browser.
Frequently Asked Questions
What is CAGR?
CAGR stands for Compound Annual Growth Rate. It measures the mean annual growth rate of an investment over a period longer than one year. The formula is (Ending Value / Starting Value) raised to the power of (1 / number of years), minus 1. It smooths out the year-to-year fluctuations to give you a single annualized rate.
How is CAGR different from average annual return?
Average annual return is a simple arithmetic mean that does not account for compounding. CAGR represents the actual compounded rate that would take you from the start value to the end value. CAGR is more accurate for measuring real investment performance over time.
What is a good CAGR for investments?
It depends on the asset class. The S&P 500 has historically delivered about 10% CAGR before inflation. Real estate typically returns 3-5%. Bonds average around 2-4%. A "good" CAGR is one that beats the benchmark for its asset class and meets your financial goals.
What does the projection mode do?
Projection mode lets you enter a starting value and an expected CAGR to calculate what your investment could be worth in the future. This is useful for planning, letting you see how your money might grow at different rates over different time horizons.
Does CAGR account for inflation?
No. CAGR shows nominal growth. To get the real (inflation-adjusted) CAGR, you would subtract the inflation rate from the nominal CAGR. For example, a 10% nominal CAGR with 3% inflation gives roughly 7% real CAGR.