CAGR Calculator
The smoothed yearly growth rate that takes you from a starting value to an ending one.
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
- cagr calculator
- compound annual growth rate
- cagr formula
- investment growth rate
- annualised return calculator
- cagr of an investment
- average annual growth
- cagr uk