CAGR Calculator

Calculate compound annual growth rate from start value, end value and years plus months, with gain, total return and an illustrative projection mode.

Finance Runs client-side Free to use

Jump to the tool

About the CAGR Calculator

CAGR Calculator finds the compound annual growth rate between a starting value and an ending value over any period, entered in years and months. It also shows the absolute gain or loss, the total return and a step-by-step breakdown of the formula CAGR = (Final ÷ Initial)^(1 ÷ Years) − 1.

A second mode projects a future value from a present value and a growth rate you choose. Projections are illustrative arithmetic: they assume the same rate every year, which real investments rarely achieve. The tool uses only the numbers you type — no market data — and is not investment advice.

How to use

Choose Calculate CAGR or Project a future value.
For CAGR, enter the initial and final values; for a projection, enter the present value and an assumed annual rate.
Enter the period in years and months (for example 3 years 6 months = 3.5 years).
Click Calculate to see the result and the formula breakdown.
Copy or download the summary, or Reset to start again.

Key features

Accurate CAGR for any period, including part-years entered as months.
Absolute gain or loss and total return alongside the annualised rate.
Formula breakdown showing the ratio, the root and the final percentage.
Illustrative future-value projection from a rate you choose.
Validation for zero, negative and missing values.
Copy Summary and Download Summary.

Best practices

Use values from the same basis — for example, both including or both excluding dividends.
Remember CAGR smooths the path; it says nothing about volatility in between.
Compare investments over the same period when using CAGR.
Account for additional deposits or withdrawals separately — CAGR assumes a single start and end value.
Treat projections as scenarios, and try more than one rate.

Benefits

Compare growth of investments, revenue or prices on a yearly basis.
Transparent working you can verify by hand.
Handles part-year periods correctly.
No sign-up and no market data required.

Frequently asked questions

What is CAGR?

Compound annual growth rate: the constant yearly rate that would take the initial value to the final value over the period, assuming growth compounds once a year.

What formula is used?

CAGR = (Final value ÷ Initial value)^(1 ÷ Years) − 1. For 1,00,000 growing to 2,00,000 in 5 years: 2^(1/5) − 1 = 14.87% per year.

How are months handled?

The period is years + months ÷ 12, so 2 years 6 months is 2.5 years. The exact decimal is used in the formula.

Why must both values be positive?

Growth from zero, or to or from a negative value, has no meaningful annualised rate, so the formula is only defined for positive values.

Is CAGR the same as average annual return?

No. A simple average of yearly returns ignores compounding and is usually higher than CAGR when returns vary.

Is the projection a prediction?

No. It is an illustrative calculation using the rate you type, assuming that rate every year. Real returns vary and are not guaranteed. This is not investment advice.