CAGR Calculator

The smoothed yearly growth rate that takes you from a starting value to an ending one.

  • Instant results
  • Private: runs in your browser
  • Free, no sign-up
Compound annual growth rate
—
 

How is CAGR calculated?

CAGR = (ending value ÷ starting value)^(1 ÷ years) − 1. It is the constant yearly growth rate that would produce the same end result, smoothing out ups and downs. £10,000 growing to £18,000 in five years is a CAGR of about 12.5%.

Use it alongside the ROI Calculator, or see the effect of regular saving in the Compound Interest Calculator.

Frequently asked questions

What does CAGR mean?

Compound annual growth rate: the steady yearly return that turns your starting value into the final value over the period.

How do I calculate CAGR?

Divide the ending value by the starting value, raise it to the power of 1 ÷ years, then subtract 1.

Is CAGR the same as average return?

No. A simple average of yearly returns overstates growth when returns are volatile; CAGR reflects compounding.

Related searches