What is the CAGR formula?

CAGR = (End Value / Start Value)^(1/Years) − 1. Multiply by 100 to express as a percentage.

What is a good CAGR for investments?

For stock market investments, a CAGR of 7–10% is generally considered good (matching historical S&P 500 returns). For early-stage businesses, 20–30%+ CAGR is often a benchmark.

How is CAGR different from average annual return?

Average annual return simply averages yearly returns. CAGR reflects actual compounding — it's the rate that, applied consistently, transforms the start value into the end value.

CAGR Calculator — Compound Annual Growth Rate

The CAGR Calculator computes the Compound Annual Growth Rate — the smoothed annual return of an investment over a given period. Unlike a simple average, CAGR accounts for compounding and gives a single consistent rate that describes growth from start to finish. It's widely used to compare investment performance, business revenue growth, and market indices.

Starting Value ($)

Ending Value ($)

Number of Years

Frequently Asked Questions

CAGR stands for Compound Annual Growth Rate. It represents the rate at which an investment would have grown if it grew at a steady rate annually, compounding each year.

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