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

How to Use This Calculator

1
Enter the starting value of your investment or metric.
2
Enter the ending value after the growth period.
3
Enter the number of years between start and end.
4
Click Calculate to see the compound annual growth rate.

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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