How to use the CAGR calculator
- Enter beginning value, ending value, and years held (decimals OK).
- Read CAGR and total gain.
- Copy link to share the same scenario when comparing investments.
- For forward projections with monthly deposits, use future value or compound interest.
What CAGR means
CAGR is the constant annual rate that would compound from beginning to ending value over the stated years. It is useful for comparing holding periods; it does not describe volatility or drawdowns along the way.
Formula
CAGR = (Ending ÷ Beginning)1/years − 1
Example
$10,000 to $15,000 over 5 years → about 8.45% CAGR and $5,000 total gain (see calculator for precision). The same ending value in 3 years implies a higher CAGR because the gain is compressed into fewer years.
Limits of two-point CAGR
Mid-period contributions, withdrawals, or fees are ignored. Use compound interest schedules for dollar-cost averaging, or dedicated IRR tools for irregular cash flows.
Frequently asked questions
What is CAGR?
CAGR is the constant annual rate that would compound from beginning to ending value over the stated years—useful for comparing holding periods, not for describing volatility.
What is the formula?
CAGR = (Ending ÷ Beginning)^(1/years) − 1 with beginning > 0. Ending below beginning yields a negative CAGR (loss).
How does this relate to compound interest and FV?
CAGR summarizes history between two points. Future value and compound interest project forward with deposits and schedules—not interchangeable with irregular flows.
What about contributions or withdrawals?
Two-point CAGR ignores intermediate flows—use FV/compound for DCA, or IRR tools for irregular cash flows.
Can years be a decimal?
Yes (e.g., 2.5 years). Match the actual elapsed time between the two values you enter.
How do the presets work?
Presets fill sample begin/end/years—edit to your numbers; total return and growth multiple update with the form.
Can I share my scenario?
Yes. Use copy link below the form to share the same numbers with someone else or keep the scenario for your records.