CAGR Calculator
Updated July 2026
Calculate the Compound Annual Growth Rate (CAGR) of any investment — a single smoothed annual return figure from a beginning and ending value.
CAGR Calculator
Frequently Asked Questions
What is the CAGR formula?
CAGR = ((Ending Value ÷ Beginning Value) ^ (1 ÷ Years)) − 1, expressed as a percentage.
Why use CAGR instead of average annual return?
CAGR accounts for compounding and gives a smoothed, single growth rate — a simple average of yearly returns can be misleading when returns are volatile.
Does CAGR reflect actual year-to-year performance?
No — it hides volatility. An investment could have wild swings up and down and still show a moderate CAGR if the beginning and ending values work out that way.