CAGR Calculator
Find the compound annual growth rate of an investment.
- Absolute growth
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What is CAGR?
Compound Annual Growth Rate (CAGR) is the smoothed annual rate at which an investment grows from its starting value to its ending value over a period, assuming steady compounding. It lets you compare very different investments on a single, like-for-like yardstick.
How this CAGR calculator works
Enter the initial value, the final value and the number of years. The calculator applies the CAGR formula to give the annualised growth rate, and also shows the total absolute growth so you can see both the yearly pace and the overall change.
How to use the CAGR Calculator
- Enter the initial value. Type what the investment was worth at the start.
- Enter the final value. Type what it is worth now, or at the end of the period.
- Set the number of years. Enter how long the investment was held.
- Read the growth rate. See the annualised CAGR and the total absolute growth instantly.
Frequently asked questions
How is CAGR different from absolute return?
Absolute return is the total percentage change; CAGR spreads that change into a steady yearly rate, making different holding periods comparable.
Does CAGR reflect volatility?
No. CAGR assumes smooth growth and ignores the ups and downs along the way, so two investments with the same CAGR can differ greatly in risk.
Can CAGR be negative?
Yes. If the final value is lower than the initial value, the CAGR is negative, showing an average yearly decline.
Is my data stored?
No. The calculation runs entirely in your browser and nothing is uploaded.