Finance
CAGR Calculator
Calculate Compound Annual Growth Rate, project future values, and compare CAGR with simple average growth.
Enter values and click Calculate
How is this calculated?
CAGR = (Ending Value / Beginning Value)^(1/Years) - 1
Future Value = Beginning Value × (1 + CAGR)^Years
Total Return = (Ending - Beginning) / Beginning × 100
Simple Avg Growth = Total Return / YearsFAQ
Frequently asked questions about CAGR
What is CAGR?
CAGR (Compound Annual Growth Rate) is the average annual growth rate of an investment over a specified period longer than one year. It smooths out volatility to show steady growth.
How is CAGR calculated?
CAGR = (Ending Value / Beginning Value)^(1/Years) - 1. It represents the rate at which an investment would have grown if it grew at a steady rate each year.
What is a good CAGR?
A good CAGR depends on context. The S&P 500 historically returns ~10% CAGR. For startups, 20-50%+ is expected. For mature businesses, 5-15% is solid. Always compare to benchmarks.
How is CAGR different from average return?
CAGR accounts for compounding while simple average does not. If an investment grows 100% then drops 50%, the average return is 25% but CAGR is 0% (you are back where you started).
Can CAGR be negative?
Yes, CAGR is negative when the ending value is less than the beginning value, indicating the investment lost value over the period on a compounded annual basis.
Is this CAGR calculator free?
Yes, completely free with no sign-up. All calculations happen in your browser — your data is never sent to any server.