CAGR Calculator
Measure the true annual growth rate of an investment or metric over time.
Growth interpretation: —
CAGR smooths growth into a constant annual rate.
Example
Final value: $2,000
Duration: 5 years
→ CAGR ≈ 14.87%
Understand this calculator
This CAGR calculator helps you measure long-term growth accurately. To understand when CAGR should be used and how it differs from ROI, read the full concept explanation.
Learn more about Compound Annual Growth Rate (CAGR)What does this CAGR calculator do?
It calculates the constant annual growth rate between a starting value and an ending value over a given time period.
Why use CAGR?
CAGR removes volatility and shows the true long-term growth trend, making comparisons across investments clearer.
How does it work?
The calculator applies the CAGR formula: (Ending value / Starting value)^(1 / years) − 1.
Frequently Asked Questions
Is CAGR the same as ROI?
No. ROI shows total growth. CAGR shows annualized growth over time.
Can CAGR be negative?
Yes. A negative CAGR indicates a decline over the period.
Does CAGR reflect volatility?
No. CAGR smooths returns and ignores year-to-year fluctuations.